Trump Drops Plan to Fire Jerome Powell

Here’s What You Need to Know

Apr 23, 2025

U.S. President Donald Trump has dropped plans to fire Federal Reserve Chairman Jerome Powell, though he's still pressuring the Fed to cut interest rates.

A Shift in Tone from the President

According to a recent Bloomberg report, Trump publicly confirmed he has "no intention of firing" Jerome Powell, despite previously criticizing him harshly. Not long ago, Trump referred to Powell as a “loser” and claimed his removal “couldn’t come fast enough.”

Now, however, the president appears to have had a change of heart. Rather than pushing for Powell’s ousting, he seems ready to let him finish his term.

Legal Debate Over Fed Chair Removal

Jerome Powell has remained composed throughout the controversy. He has maintained that the U.S. president cannot legally fire a Federal Reserve Chair without just cause. This position has sparked a wider legal discussion, though most experts agree that the Fed Chair has strong protection under the law.

Interestingly, despite Trump’s earlier threats, traders on Polymarket are betting that Powell will stay in office, signaling that market sentiment is leaning toward stability.

Impact on Cryptocurrency Markets

Trump’s calls for lower interest rates have sparked renewed optimism in the cryptocurrency market. Historically, such economic policies tend to push more investors toward riskier assets like Bitcoin.

With the dollar potentially weakening, cryptocurrencies are becoming more attractive. Since Trump put his firing plans on hold, Bitcoin has climbed to over $93,000 as per Coinpedia Market data, showing a strong reaction from crypto investors.

For a more detailed Bitcoin price prediction 2030, check out our full analysis!

Renewed Push for Interest Rate Cuts

While Trump may have backed down from firing Powell, his demand for lower interest rates has only grown stronger. During the swearing-in of new SEC Chair Paul Atkins, Trump again called on the Fed to cut rates.

“I would like to see him be a little more active in terms of his idea to lower interest rates,” Trump said. “It is a perfect time to lower interest rates.”

The president argues that without rate cuts, the U.S. economy could slow down. He also pointed out that the European Union has cut rates multiple times, while the Fed has moved more cautiously.

Powell’s Cautious Approach

So far, the Federal Reserve has cut interest rates three times in 2024. However, Powell has been hesitant to make further changes, emphasizing the need for a measured approach amid global uncertainty—particularly with ongoing trade tensions.