16.07.2025 19:09
Reports suggest that President Trump drafted a letter aiming to dismiss Federal Reserve Chairman Jerome Powell, a move that has sent ripples of anxiety through financial markets worldwide. This potential replacement of the Fed chair has raised serious concerns about the stability of the U.S. economy and the future independence of the Federal Reserve.
The proposed action by President Trump, stemming from his dissatisfaction with current interest rates, is viewed by many financial institutions as a significant threat. Should Trump succeed in ousting Powell, the resulting instability could have far-reaching consequences, potentially impacting both domestic and global financial markets. The implications extend beyond mere market fluctuations; the integrity and autonomy of the Federal Reserve itself are at stake.
Powell, for his part, has consistently emphasized the Federal Reserve's commitment to making decisions based solely on economic data, rather than succumbing to political pressure. However, this assertion, despite its inherent importance, has done little to alleviate the growing unease among investors and financial experts. Deutsche Bank, for instance, has issued a stark warning about the potential for a market collapse should the Fed's independence be compromised, highlighting significant systemic risks to currency and bond markets.
The uncertainty surrounding the situation has already manifested in market reactions. Adding fuel to the fire, the ongoing political turmoil coincides with Bitcoin (BTC) trading at $118,698.50, boasting a market capitalization of $2.36 trillion and dominating 62.53% of the market as of July 16, 2025, according to data from internet sources. While BTC showed a 2.01% increase in the last 24 hours and a substantial 40.21% growth over the past 90 days, the current political climate introduces an element of unpredictability. Experts suggest that heightened volatility in both the cryptocurrency and traditional financial markets may be a direct consequence of this evolving political landscape. Historical precedents support this view, indicating that swift political changes often trigger short-term market fluctuations in both fiat and cryptocurrencies.
