U.S. President Donald Trump’s rhetoric toward Fed Chair Jerome Powell appeared to stoke volatility in the crypto market on Wednesday, as investors weighed whether he could soon fire the official.
The price of Bitcoin rose as high as $119,500, then fell to around $119,000—yet it’s up even higher now to $119,650, currently up 2% over the last day per data fromCoinGecko. The market moves came as Trump again criticized the Federal Reserve chairman, yet pushed back against the notion of firing Powell in front of reporters.
“We’re not planning on doing anything,” Trump said, after being asked about plans to push Powell out of the central bank’s leadership role before his term ends in eight months. “He’s doing a lousy job, but no I’m not talking about that.”
Trump’s posturing conflicted with a report from Bloomberg, which signaled on Wednesday that Trump will likely fire Powell soon, citing an undefined White House official.
On Tuesday night, Trump showed a draft of a letter firing Powell to Republican lawmakers, who had gathered in the Oval Office to discuss their apprehensions toward passing crypto legislation, The New York Times reported, citing two people briefed on the meeting. Trump acknowledged the meeting during Oval Office comments on Wednesday.
Trump has repeatedly called on Powell to lower interest rates, arguing that it would reduce the U.S. government’s debt burden. But the central bank has held its benchmark rate steady this year, waiting to see whether Trump’s tariffs could lead to renewed price pressures.
If Trump were to try and fire Powell, the move would be unprecedented. It’s unclear whether Trump actually has the authority, but the move has the potential to wreak havoc on stocks and bonds, experts say, if it degrades trust in the foundation of America’s economy.
As a competing store of value to the U.S. dollar, however, some analysts believe that challenging the Fed’s independence would benefit Bitcoin and other assets like gold.
Trump and his associates have stepped up pressure on Powell recently, leaning into accusations of conducting monetary policy in a partisan fashion and raising concerns over the Fed’s $2.5 billion renovation plan for its headquarters.
Asked by a reporter on Wednesday whether he thinks the renovation plan could be sufficient cause to fire Powell, Trump said, “I think it sort of is.”
The episode is reminiscent in some ways of Trump’s efforts to reshape global trade through “reciprocal” tariffs earlier this year.
Amid twists and turns in his administration’s trade policy, Trump’s account of ongoing negotiations with several nations conflicted at times with members of his cabinet, including the status of a deal that was eventually reached with China.