Bitcoin Soars as Dollar and Stocks Plummet Following Trump’s Attack on Fed and Powell

Key Points

• President Trump criticizes Federal Reserve Chairman Jerome Powell over interest rates, warning of potential economic slowdown.
• Despite stock market decline, cryptocurrency market remains resilient with Bitcoin reaching a four-week high.

President Donald Trump recently intensified his criticism of Federal Reserve Chairman Jerome Powell. Trump labeled Powell a “major loser” and warned of potential economic slowdowns.

Trump’s Criticism of Powell

In a post on Truth Social, Trump stressed the necessity for Powell to take immediate action to lower interest rates to prevent a potential slowdown of the U.S. economy.

Trump argued that with decreasing prices, inflation appears unlikely, but a recession could be imminent if the Federal Reserve does not modify its policies.

Effect on U.S. Stocks and Cryptocurrency

Following Trump’s comments, U.S. stock markets closed in the red. The SP 500 fell by 2.4%, the Nasdaq slipped 2.5%, and the Dow Jones lost almost 1,000 points, a 2.5% decline.

Despite the downturn in the stock market, the cryptocurrency market remained steady, maintaining a total market capitalization of $2.83 trillion. Bitcoin played a significant role in supporting the market, reaching a four-week high of $88,500.

Potential to Fire Powell?

Trump’s recent criticisms of Powell, whom he appointed, have led to speculation about Trump’s legal ability to remove the Federal Reserve Chair before his term ends in May 2026. Powell has asserted that current law does not allow the president to dismiss him.

Any attempt by Trump to remove Powell could result in a sharp sell-off in U.S. equity markets. Despite Trump’s calls for interest rate cuts, many experts believe the Fed will still implement several rate cuts this year.