Fed Chair Powell Resignation Speculation Boosts Crypto Markets

• FHFA Director William Pulte claims Jerome Powell is considering resignation, which would benefit America’s economy. 

• President Trump wants Powell to resign immediately so he can appoint a new Fed Chair who will cut interest rates by 300 basis points. 

• Bitcoin rose to $118,000 on the resignation news while the S&P 500 fell 0.3% as markets react to potential Fed leadership changes.

Federal Reserve Chair Jerome Powell faces mounting pressure to step down as reports emerge suggesting he may be considering resignation. FHFA Director William Pulte said, “I’m encouraged by reports that Jerome Powell is considering resigning. I think this will be the right decision for America, and the economy will boom.” The speculation has sent ripples through financial markets, with Bitcoin rising above $118,000 and traditional stocks showing mixed reactions.

President Donald Trump renewed his criticism of Federal Reserve Chair Jerome Powell during a Cabinet meeting on Tuesday, calling for him to resign so that he can appoint a new central bank chair who will lower interest rates. Trump has consistently blamed Powell for maintaining elevated interest rates despite claims of controlled inflation. The President argues that rapid rate cuts would better reflect current market strength and support continued economic growth.

Trump Administration Pushes for Rate Cuts

President Trump again said Jerome Powell should resign immediately, repeating a call he made last week, and noted that “it’s OK with me” if Congress investigates the Federal Reserve chairman. The administration seeks significant monetary policy changes, including a potential 300 basis point rate cut that Powell has resisted implementing.

Trump has placed the blame squarely on Powell for not cutting rates, which he says has cost the nation “hundreds of billions of dollars.” The President maintains that current economic conditions warrant aggressive rate reductions to sustain market momentum and support business investment.

Senator Cynthia Lummis has joined calls for Powell’s departure, citing delays in rate cuts as justification for a leadership change. The bipartisan criticism reflects growing frustration with Fed policy decisions among some lawmakers and administration officials.

Market Response and Crypto Implications

The S&P 500 declined 0.3% Friday afternoon following a social media post by William J. Pulte claiming Federal Reserve Chairman Jerome Powell is considering stepping down. Traditional equity markets reacted cautiously to the resignation speculation, while cryptocurrency markets demonstrated more optimistic responses.

Bitcoin’s price surge to $118,000 reflects investor expectations that Powell’s potential departure could accelerate monetary policy shifts. Crypto enthusiasts view Fed leadership changes favorable for digital asset adoption and institutional investment flows.

If Fed Chair Powell resigns in the coming days, as predicted by Pulte, President Trump will replace him with his team members. As a result, the odds of several rate cuts in the United States before the end of 2025 will skyrocket. Market participants anticipate that Trump’s preferred Fed appointee would implement more accommodative monetary policies.

Powell’s term as Fed chair ends on May 15, 2026. However, his term as a member of the central bank’s board of governors extends until January 31, 2028, providing some timeline clarity for potential succession planning. However, Powell has not publicly indicated any intention to resign before his term expires.

The Federal Reserve maintains its position of monitoring economic conditions before making rate decisions. Federal Reserve officials diverged at their June meeting about how aggressively they would be willing to cut interest rates. This internal disagreement suggests complex policy considerations beyond presidential preferences.