A fresh wave of political pressure on the Federal Reserve is rippling through financial markets, and cryptocurrencies are among the biggest beneficiaries. Bitcoin (CRYPTO: BTC) and major altcoins moved higher after President Donald Trump sharply criticized Federal Reserve Chair Jerome Powell, calling him a “jerk” and suggesting he “will be gone soon” during remarks at the Detroit Economic Club.
The comments, combined with reports of a potential Department of Justice probe into aspects of Federal Reserve leadership, have reignited speculation that the central bank could tilt more dovish in the months ahead. For crypto traders, the implications are familiar and powerful. Expectations of lower interest rates and easier monetary policy often translate into stronger demand for risk assets, including digital currencies.
Trump’s Renewed Attack on the Federal Reserve
President Trump has long clashed with the Federal Reserve over interest rate policy, and his latest remarks signal that the tension is far from over. Speaking to business leaders in Detroit, Trump criticized Powell’s leadership and suggested that change at the top of the central bank could be imminent.
While the White House does not have unilateral authority to remove a sitting Fed chair without cause, markets tend to react less to legal nuance and more to perceived political momentum. Trump’s comments reinforced the idea that Federal Reserve independence could face renewed pressure if political conditions shift in his favor.
The timing of the remarks amplified their impact. With investors already focused on the trajectory of interest rates and economic growth, the suggestion of leadership instability at the Fed added a new layer of uncertainty.
Reports of DOJ Scrutiny Add Fuel
Adding to market anxiety were reports that the Department of Justice may be examining aspects of Federal Reserve leadership and governance. While details remain limited and no formal charges or conclusions have been announced, the mere possibility of a probe …Full story available on Benzinga.com
Bitcoin shows strong correlation with institutional demand following 7% uptick
...
Read moreDetails
