- Fed Chair Jerome Powell is set to speak today, and rumors suggest he may soon resign.
- Tensions with Trump and a DOJ referral have increased speculation around Powell’s future.
- The crypto market will show signs of a possible uptrend if Powell announces his resignation.
Federal Reserve Chair Jerome Powell will deliver a closely watched speech today at 8:30 AM EST. The event comes amid growing speculation about a possible resignation, driven by rising tensions with former President Donald Trump and mounting political pressure.
The crypto market has already begun reacting to the anticipation. Despite a broader market pullback, Bitcoin, Ethereum, and XRP posted modest hourly gains. At press time, the total crypto market cap is $3.91 trillion, down 0.5% in 24 hours. Bitcoin is up 0.14%, Ethereum has gained 0.61%, and XRP has risen by 0.5% in the last hour.
Pulte and Luna Add Fuel to Powell Exit Speculation
William “Bill” Pulte, Director of the Federal Housing Finance Agency, posted on X that Powell might soon announce his resignation. While he clarified that today’s speech may not include such an announcement, he suggested the possibility remains strong.
Pulte’s remarks come on the heels of statements by Trump, who recently criticized Powell’s interest rate policy and hinted at the idea of firing him. Although Trump later said he would unlikely act, he did not rule out the option completely, especially if wrongdoing is proven.
Further intensifying the pressure, Congresswoman Anna Paulina Luna has referred Powell to the Department of Justice for investigation. She accused the Fed Chair of misleading Congress and executive officials regarding a taxpayer-funded initiative. “Lying under oath is a serious offense,” Luna stated, citing concerns about Powell’s credibility.
US Treasury Secretary Scott Bessent has also confirmed that discussions are underway to replace Powell. He disapproved of the Fed’s involvement in policy areas beyond its core monetary mandate.
Bullish Sentiment Brews in Crypto Circles
Despite current market weakness, traders are watching today’s event for a possible turning point. In past instances, comments from Trump about firing Powell triggered temporary spikes in Bitcoin’s price.
This time, speculation over an official resignation could trigger renewed bullish momentum. With Ethereum up 24.2% and XRP up 20.2% over the past week, the stage is set for a potential breakout if Powell announces his departure.
The crypto sector remains alert. If Powell confirms his resignation, the market may interpret it as a signal of political disruption at the Federal Reserve. This event historically correlates with increased appetite for decentralized assets like Bitcoin and Ethereum.
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