Trump Calls For Jerome Powell’s Removal, Rages About Rate Cuts

On 17 April 2025, President Donald Trump escalated his public criticism of Federal Reserve Chair Jerome Powell, calling for his removal and demanding immediate interest rate cuts.

The remarks come at a time when the crypto market is witnessing a significant rally, with the total market capitalization climbing to approximately $2.6trillion.

Trump’s renewed attacks on Powell

In a sharply worded Truth Social post, Trump declared that Powell’s “termination cannot come fast enough”, accusing him of being “always too late and wrong”. The statement revives a long-standing feud between Trump and Powell, which began during Trump’s presidency and continues into the current political cycle.

Trump’s comments follow the Federal Reserve’s decision to maintain its benchmark interest rate between 4.25% and 4.50%, a level held steady since December 2024. He argued that the Fed should have acted sooner to cut rates, citing the European Central Bank’s recent move to ease monetary policy as a precedent the Fed should have followed.

Powell defends Fed independence

Just hours before Trump’s post, Chair Powell addressed the Economic Club of Chicago, where he reiterated the importance of the Fed’s independence from political influence.

He also warned that the Trump administration’s renewed tariff strategy, including steep duties on imports from China and other nations, could complicate the central bank’s objectives related to inflation control and employment stabilization.

Powell stated that the Fed intends to wait for greater clarity on how the new economic policies will affect consumer prices and supply chains before making any significant policy changes.

Impact on the crypto market

The political pressure on the Fed and the uncertainty surrounding future rate decisions are having ripple effects in financial markets, particularly in crypto. Lower interest rates generally increase liquidity and investor appetite for risk-on assets, including cryptocurrencies.

As of 17 April, Bitcoin (BTC) was trading at $84,681, and Ethereum (ETH) at $1,595.34. Analysts believe that continued political pressure to cut rates could further fuel inflows into digital assets, particularly as traditional markets remain cautious amid geopolitical tensions.

The broader crypto market has held its momentum through early Q2, buoyed by rising institutional interest, ETF adoption, and speculation around macro policy shifts.

What comes next?

The clash between Trump and Powell underscores the complex relationship between monetary policy and political agendas. While the Fed seeks to maintain its credibility and autonomy, increasing calls for rate cuts and potential leadership changes could influence its decision-making process.

Crypto investors are paying close attention. In a financial environment where central bank signals increasingly sway sentiment, the Fed’s next move could influence the trajectory of both traditional markets and digital assets heading into the second half of 2025.