Trump Adviser Calls for Powell Exit as Bitcoin Watches Fed’s Next Move
Trump economic adviser Kevin Hassett is pressing former Federal Reserve Chair Jerome Powell to resign from the central bank's Board of Governors, a move that could impact U.S. monetary policy and Bitcoin markets.
Kevin Hassett, President Donald Trump’s leading economic adviser, is pressing former Federal Reserve Chair Jerome Powell to step down from the central bank’s Board of Governors, a development that could influence U.S. monetary policy and Bitcoin.
Following an internal oversight report that uncovered management problems regarding renovations at the central bank’s Washington, D.C., office, Hassett recommended that Powell “move on.” President Trump has also voiced support for pushing Powell off the Fed board, alongside other criticisms directed at the former chair.
Powell has remained at the Federal Reserve since May, following the appointment of Chairman Kevin Warsh. His role remains crucial because he continues to function as one of the 12 voting members on the Federal Open Market Committee, maintaining a direct vote on interest rate policy.
Powell Exit Could Reshape Fed Rate Expectations
Should Powell choose to resign prior to the expiration of his term as governor, Trump would have the authority to appoint a successor, subject to Senate confirmation. Nonetheless, such a departure would not automatically benefit Bitcoin; the market impact would hinge entirely on the incoming replacement’s stance on monetary policy and interest rates.
This discourse emerges on the heels of the Federal Reserve raising its target rate by 25 basis points to a range of 3.75%-4% on September 16. Every Federal Reserve policymaker cast a vote in favor of the rate hike, which marked the first increase since 2023. With inflation remaining above the Fed’s 2% objective, various economic indicators and data continue to steer decisions surrounding interest rates and inflation.
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Following a sluggish period around the September meeting, Bitcoin staged a recovery. Demand was propelled higher as corporate and institutional interest in U.S. spot Bitcoin ETFs surged, pushing the price of Bitcoin past $87,000. This growing institutional appetite has the potential to offset certain pressures brought on by tighter monetary policy.
Could Lower Rates Give Bitcoin a Tailwind?
A dovish stance from the Federal Reserve could favor Bitcoin valuations if lowered interest rate expectations drive down Treasury yields and improve overall market liquidity. That said, Powell’s exit by itself is unlikely to elevate the probability of this outcome.
Treasury yields stand as a pivotal driver for Bitcoin. Elevated yields can present a headhead for broader financial conditions while offering alternative returns to investors who remain hesitant regarding Bitcoin’s price volatility.
Bitcoin’s price trajectory is influenced by multiple elements, including Federal Reserve expectations, shifts in Treasury yields, institutional interest, and alternative investment products like ETFs.
Powell retains significant influence largely because introducing a new governor to the FOMC could alter the balance of policy perspectives within the committee. According to the official Federal Reserve website, Powell is listed alongside fellow governors and regional Fed chiefs as a 2026 voting member of the FOMC.
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Attention now shifts to the upcoming Federal Reserve meeting scheduled for October 27-28, where interest rate projections are expected to take center stage. As markets reassess the outlook for potential future rate hikes, Bitcoin traders are tracking economic releases and ongoing developments among policymakers closely.
Although a departure by Powell could introduce new variables to digital asset markets, his exit is unlikely to drastically sway BTC prices on its own, with the ultimate impact depending heavily on his successor and broader shifts in U.S. interest rate forecasts.
Frequently Asked Questions
Why is Kevin Hassett asking Jerome Powell to resign?
Kevin Hassett is urging Jerome Powell to leave the Federal Reserve Board of Governors following an internal oversight report that revealed management failures related to renovations at the central bank’s headquarters in Washington, D.C.
What role does Jerome Powell currently hold at the Fed?
Powell serves as a member of the Federal Reserve’s Board of Governors and acts as one of the 12 voting members on the Federal Open Market Committee (FOMC), giving him a direct vote on interest rate policy.
How does the Federal Reserve’s interest rate policy affect Bitcoin?
Lower interest rate expectations and a dovish Fed can improve market liquidity and lower Treasury yields, which typically acts as a tailwind for Bitcoin. Conversely, tighter monetary policy and high Treasury yields can create headwinds for digital assets.
When is the next Federal Reserve meeting?
The next key Federal Reserve meeting is scheduled for October 27-28, where interest rate expectations will be a primary focus for markets and traders.
Web3 PR Specialist | KOL | Blockchain Advocate | Digital Strategy Expert based in Moscow, Russia. Focused on Web3 communications, blockchain, digital strategy, and community growth.
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