2025-12-30 07:25:57

Recently, U.S. President Trump publicly stated in Florida that Federal Reserve Chair Jerome Powell "should resign," and revealed that he already has a candidate in mind for the next chair. Powell, on the other hand, did not back down, stating he would serve until the end of his term. Behind this dispute lies a fundamental disagreement over the direction of the Federal Reserve's policy.

Some time ago, the Federal Reserve announced a 25 basis point rate cut, bringing the federal funds target range down to 4.00% to 4.25%. This move was somewhat modest—Trump had hoped for a 3 percentage point cut, but only got a quarter of that, which certainly left him dissatisfied.

Looking back at history, the conflict between Trump and Powell has long been brewing. In 2018, Powell led the Fed in raising interest rates, while Trump wanted to stimulate economic growth through rate cuts, so their policy goals were fundamentally misaligned. Since then, Trump has frequently criticized Powell in public and on social media, and in early July, he even directly called for Powell to "resign immediately."

Interestingly, in mid-July, U.S. Treasury Secretary Janet Yellen revealed that the "selection process for the next Federal Reserve Chair has officially begun." Rumors circulated that Trump had even drafted a dismissal letter, but Trump later denied this.

From a legal perspective, the practical limitations of this drama are clear. Under U.S. law, the Federal Reserve Chair enjoys tenure protection, and the President does not have the direct authority to dismiss them. Powell is well aware of this, which is why he confidently states he will serve until the end of his term. No matter how anxious Trump is, he must accept this legal reality.

From the perspective of the crypto market, these policy battles are highly significant. Interest rate policies directly influence liquidity expectations and asset valuation logic. The smaller-than-expected rate cut indicates that the Fed remains cautious about inflation, which will impact the re-pricing of risk assets. For traders, the key is to closely monitor the Fed's subsequent policy signals rather than obsess over who will ultimately become the next chair.

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WagmiAnon

· 3h ago

Interest rate cut only 25bp? Trump must be very disappointed. He was expecting a feast at 3%, but it turned out to be just an appetizer. No wonder he's getting impatient. --- To put it simply, politics is politics. We still need to focus on liquidity—that's what the crypto circle relies on. --- Legally, Trump really can't play around; Powell has firmly locked down the terms. --- What’s really interesting is that the rate cut expectations are falling behind, and risk assets need to be re-evaluated. --- After two people tussling for a while, isn’t it still affecting our wallets? The interest rate is the hand secretly controlling everything. --- Another power struggle drama, but the ending is within the legal framework of the Federal Reserve—quite ironic. --- Inflation hasn't fully subsided yet; no wonder the Fed is reluctant to cut rates sharply—that's the real situation. --- What about Trump's candidate? If the chairperson really changes, the crypto market might experience another wave of volatility. --- Paying attention to policy signals is more important than watching individuals—that's a spot-on statement.

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HashRatePhilosopher

· 3h ago

A 25 basis point rate cut is really just a way to appease beggars. Trump expects a 3-point result, but the liquidity in the crypto circle and others will still take time to recover. --- Powell is definitely going to stay in office. No matter how much Trump protests, it’s useless. The Federal Reserve’s system is designed this way. --- The key is still to watch inflation data. Monetary policy is the true logic behind asset re-pricing. --- The two have been fighting for so many years. Basically, it’s an eternal contradiction between economic stimulus and anti-inflation measures. The market oscillates within this game. --- Instead of worrying about who will be the chair, it’s better to focus on the subsequent rate cut pace, which will truly impact our wallets. --- The position of Federal Reserve Chair may seem powerful, but in reality, the legal protections are so strong that even the President can’t easily remove the chair.

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GasGuzzler

· 3h ago

A quarter-point rate cut? Laughable. If only Trump could directly remove Powell, but unfortunately, the legal hurdles are insurmountable. --- Basically, whoever controls liquidity has the say—that's what the crypto world should really care about. --- Arguing every day about who should step down is pointless; focus on the next rate cut, because that’s what really affects our wallets. --- The legal protection period? No matter how angry Trump gets, it’s useless. Powell has made up his mind on this. --- Interest rate policy game? Just tell me directly—inflation still can't be brought down, right?

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