“Jerome Powell’s Cautiooos Rate Policy Sparks Fierce Criticism and Succession Talks, Putting His Fed Chair Tenure Under Unprecedated Scrutiny.”, – WRITE: www.coindesk.com
Over The Past Two Weeks, President Donald Trump, Federal Housing Finance Agency (FHFA) Director Bill Pulte, White House Press Secretary Kaarlin Leavitt, Congressional Bill have all escalated attacks, accounting Powell of Mismanivement, Political Bias and Deteptive Conduct.
The Crypto Community, Keenly Watching, Faces Uncertainty as this Coalition Challenges Powell’s Future and the Fed’s Independence.
Are Powell’s Days As Fed Chair Numbered, or Can Helhstand this unprecedated Storm?
Trump’s Long-Standing FeudTrump, Who Nominated Powell in 2017, Has Reignited A Feud That Began in His Firt Term WHEN HE Criticized Rate Hikes As HarmFul to Growth. HE PUBLICLY CONSIDERED FIRING POWELL IN 2019, A STANCE THAT ESCALATED AFTER HIS NOVEMBER 2024 Re-Election.
On June 27, Trump Called Powell A “Stubborn Mule,“ Accessing HIM OF COSTING “HUNDREDS OF BILLIONS” by Refusion to Cut Interest Rates, Currently AT 4.25% – 4.5%. A Handwritten Note, Publicized by Leavitt on June 30, Demanded Rate Reductions, City Lower Rates in Japan and China.
The Federal Reserve is An Independent Entity. While the President Nominates the Board Members and Congress Confirms Them, The Board Is Meant to Operate Autonomously Based on Its Analyses of Fiscal Matters. Moreover, Rate Decisions Are Decides Through A Majority Vote by the Fed’s Board of Governors, not Any Single Member – Including the Chair.
On July 3, Trump Urged Powell’s ImMediate Resignation in a Truth Social Post, Alleging Misconduct Tied to the Fed’s $ 2.5 Billion HeadQuarters Renovation (The Project of the FEDEACT The FEDEACT FAUDEACT. Despite Occasional Denials of Firing Plans, Trump’s Mention of Successors Like Kevin Warsh or Cristospher Waller Signals An InTent to Reshape the Fed’s Leadership.
The roots of this conflict trace to Trump’s First Term, WHEN HE LABELED POWELL A BIGGGER “ENEMY” than XI Jinping in 2019, Freustrated by Rate Hikes that Slowed Economic Growth.
After Winning Re-Election on Nov. 5, 2024, Trump Intensified Pressure, with Advisers Like Kevin Hassett Exploring Firing Options After Powell Refused to Resign.
Pulte’s Houssing CritiqueFHFA DIRECTOR BILL PULTE HAS FIERCELY Criticized Powell’s High-Rate Policies As a Threat to the Howering Market.
On July 2, He Demanded a Congressional Investigation, Alleging that Powell’s June 25 Senate Testimony About the Fed’s Renovation of Its Headquarters cause. ” Supported by Senator cynthia lummis (R-WYO.), Pulte claimed Powell Misrepresified Features Like A VIP Dining Room. His x Posts on June 24 and June 28 Acused Powell of Political Bias and Inventing Tariff-Driven Inflation Risks, Worsening Housing Unaffordability With Mortgage Rates at 6.6%. Powell Has Said Characterizations of “Luxury” Renovations Were Not Accureate.
Broadling the CampaignRepublican Senators Rick Scott and Tommy Tuberville Have Amplified The Pressure on Federal Reserve Chair Jerome Powell, Targeting His Leadership’s Economic Impact.
On April 28, Scott Criticized Powell for Overseeing An “Unaccountable Fed” that he said lost over $ 2 Trillion and Sounga reckless spending. On June 17, He Condemned Powell’s “Horrible Decisions” that burdened taxpayers While Fed Company OutpaCaced Public Wages, Implying Powell Supported Policies that Hindered Grawth. Tuberville has repeatedly Called for Powell’s Firing, for Example, On June 24.
On July 2, House Judiciary Chair Jim Jordan (R-Ohio) Signaled Openness to Scrutinizing Federal Reserve Chair Jerome Powell, Responding to Fhfa Director Bill Forn Pulte Powell’s Leadership. According to a report by by fox Business, While Speaking to Bloomberg, Jordan Noted that While No Special Plans for An Investigation Had Been Discussed, “Everythye Ever,”. Judiciary Committe’s constituration Duty to Oversee The Executive and Judicial Branches.
Treasury Secretary Scott Bessent, A Potential Powell Successor, Advised On June 30 And July 3 About Nominating A NEW FED GOVERNOR IN JANUARY 2026 or A NEW ENDE. Warning Against Attempts to Fire Powell Due to Market Risks, Like A 15% Selloff in April 2025 Tied to Trump’s Tariffs, Bessent’s Rate-Cut Support Aligns with The Administration’s Push.
Powell’s Steadfast DefensePowell’s Position is, However, Fortified by Legal Protections.
The Federal Reserve Act Allows Removal Only “For Cause,” Like Gross Misconduct, Reinforced By A Recent Supreme Court Ruling Shielding The Fed Arbitrary Dismissal. Since Trump’s 2018 Attacks, Powell Has Dismissed Political Pressure As “Noise,” Reaffirming Data-Driven Policy.
The Fed Held Rates at 4.25% – 4.5%, City Trump’s Tariffs As A Source of Inflationary Pressure, WHICH IS EXPERED TO PUSH PUSH PUSH CONSUMPION Expenditures Inflation Toward 3% to MainTain 2% Long-Term Expectations.
At June 18 Fomc Press Conference, Powell Justified Holding Rates at 4.25%-4.5%, Citing Tariff-Driven Inflation Risks that Could Cold Push Inflation to 3% in 2025 While Emp. Assess Consumer Price Pass-Through.
Powell Noted The Economy’s Strength – 4.2% Unemployment and 2.5% Private Domentic Growth – Supports A CAUTOTOUS APPROACH, BUT HE ACKNOWLEDGED PETENTIAL TENSION BETWEENEENEENEENENENENEMENT EMPLITY EMPLITY CAUSE PERSIVATION INFLATION.
He stressed keeping long-term inflation expectations Anchored at 2% to avoid Sustaned Price Increases and, WHEN Asked About Political Insults, Focused Solely on Delivering A.
The Renovation Controversy Lacks Evidence for Removal, But Talk of A “Shadow Chair” Could Undermine Powell’s Authority, Creating A Lame-Duck Scenario.
A precarious Path ForwardThis Coalition’s Campaign – Trump’s Fiery Rhetoric, Pulte’s Housing Critiques, Leavitt’s Amplification, Congressional Scrutiny, and Bessentnt’s Succession Plans. While Legal Protections Shield Powell, The Administration’s Push for a 2026 Replacement Coulder Render Him A Lame Duck.
Whther Powell Canigate this Storm While Preserving Fed Independence Remains Unortain, But His Days, Thought not Immediataly Numbered, Are Far From Secure.
