Trump's Statement on Fed Chair Impacts Bitcoin Price

U.S. President Donald Trump stated that he is not planning to remove Fed Chair Jerome Powell despite reports suggesting otherwise. The Federal Reserve has maintained its benchmark interest rate unchanged despite pressure from Trump. Analysts believe that Trump's attempts to oust Powell could potentially benefit Bitcoin amidst challenges faced by stocks and bonds.

Trump's comments on Powell led to fluctuations in the crypto market, with Bitcoin reaching $119,500 before dropping to around $119,000. However, it has since risen to $119,650, showing a 2% increase over the last day according to CoinGecko data. Despite criticism, Trump denied any immediate plans to dismiss Powell, contradicting reports indicating otherwise.

There were reports that Trump shared a draft letter to fire Powell with Republican lawmakers during a meeting, although Trump later downplayed the possibility of such action. Trump has been urging Powell to lower interest rates to ease the government's debt burden, but the Fed has maintained its rates steady this year.

If Trump were to remove Powell, it would be an unprecedented move that could impact stocks and bonds by undermining trust in the economy. However, some analysts suggest that challenging the Fed's independence could benefit assets like Bitcoin and gold as alternative stores of value.

Trump's recent pressure on Powell, including criticism of the Fed's renovation plan, has raised concerns about the central bank's operations. The situation echoes Trump's past efforts to reshape trade policies, showcasing potential conflicts within his administration's decision-making processes.