Powell's Resignation? Crypto Market Reacts
Reports suggest Federal Reserve Chair Jerome Powell is considering resigning, a development potentially bullish for the cryptocurrency market. This follows criticism from former President Donald Trump, who advocated for a 300-basis-point (bps) interest rate cut.
FHFA Chairman Weighs In
William Pulte, Chairman of the Federal Housing Finance Agency (FHFA), commented on the resignation speculation in an X post. While not referencing specific reports, he stated that Powell's departure would be "the right direction for America, and the economy will boom."
Pulte previously called for an investigation into Powell, urging Congress to examine alleged inaccuracies in his Senate testimony.
The potential resignation comes amid Trump's continued criticism of Powell and his push for a significant rate cut. Trump argued against the Fed's current stance, claiming the absence of inflation necessitates a rapid rate reduction.
He linked a rate cut to the strong performance of the stock market and the soaring crypto prices. However, Powell maintained the Fed's preference to observe the impact of tariffs on inflation before adjusting rates.
Trump reiterated his disapproval of Powell's performance, though he denied plans to remove him from his position. Powell's term as Fed Chair extends until May of next year.
Senator Cynthia Lummis also voiced her support for a change in Fed leadership, citing Powell's reluctance to cut rates as a reason for his departure.
Bitcoin Price Increase
Following Pulte's statement about Powell's potential resignation, the price of Bitcoin rose from approximately $117,400 to $118,000. This price movement suggests the possibility of a future rate cut after Powell's departure could be viewed favorably by the market.
With a 95% probability of the Fed maintaining current rates at its July 30th meeting, Powell's departure might be the catalyst for a future rate cut. This information is crucial for investors navigating the complexities of the crypto market.
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