U.S. President Donald Trump stated he is "not planning on doing anything" to remove Federal Reserve Chair Jerome Powell, despite earlier reports suggesting imminent dismissal. This clarification came after Trump showed Republican lawmakers a draft firing letter during a Tuesday meeting discussing cryptocurrency legislation, according to The New York Times.
Trump maintained harsh criticism of Powell, labeling him "Too Late" for delayed rate decisions and accusing him of partisan monetary policies. However, the President confirmed any leadership change would occur after Powell's term concludes in eight months: "We'll make a change then." The announcement followed a Bloomberg report indicating Trump might soon oust Powell, creating market uncertainty.
Bitcoin reacted with volatility, swinging from $119,500 to $119,000 before settling at $119,650—a 2% daily gain. Analysts had speculated that firing Powell could destabilize traditional markets and benefit Bitcoin as a hedge. Trump has repeatedly pressured the Fed to cut interest rates to reduce U.S. debt, but the central bank has held rates steady amid tariff concerns.
Legal experts question whether Trump possesses authority to fire the Fed chair, noting such a move would be unprecedented and risk market turmoil by undermining Fed independence.