The potential ouster of Powell before his term ends in May 2026 would be unprecedented. But then again, so is pretty much everything these days. Trump’s team is “actively exploring” Powell’s removal, according to National Economic Council Director Kevin Hassett. Trump’s recent statement that Powell’s removal “cannot come fast enough” underscores his growing impatience with the Fed chair.
The market’s reaction? A collective freakout, with traditional assets wobbling while Bitcoin stands firm above $84,000. Economic data suggests slower dollar growth is becoming more evident.
For a glimpse of what might happen if central bank independence gets torpedoed, cast your gaze no further than Turkey. President Erdogan’s meddling with his central bank led to an epic currency meltdown, sending Turkish citizens scrambling for Bitcoin and stablecoins. The blockchain transparency enables anyone to verify these capital flight transactions.
It’s amazing how quickly people discover crypto’s appeal when their savings start evaporating.
The dollar’s recent weakness has already pushed the euro above $1.15 and sent the greenback below 141 yen. Bitcoin’s surge amid this chaos isn’t just coincidence – it’s increasingly viewed as a hedge against government intervention.
Funny how a currency created to bypass central authority becomes more attractive when central authority starts looking shaky.
But removing Powell wouldn’t be as simple as Trump’s famous “You’re fired!” catchphrase. Any replacement would need Senate confirmation, and the legal challenges would be enormous.
Still, just the threat of such action has validated Bitcoin’s original thesis as a safe haven asset. As interest rate policies diverge globally and political uncertainty rises, one thing’s becoming clear: Bitcoin’s role as financial insurance is no longer just a crypto-bro fantasy.
