All things are equal, lighter monetary policy, tends to be good at risk assets – crypto certainly among them. Bitcoin gathered for over $ 120,000 for the first time ever this weekend when pressure on the Hawkish American Federal Reserve President Jerome Powell to resign or be fired even higher. Coincidence?
To review, Jerome Powell – who rushed through 75 base points for betting before the 2024 election – quickly switched to a more Hawkish attitude after Donald Trump’s election (Although he allows another 25 base point -cutting right after November)And it has famous not sat well with the president.
“Honestly, it’s all about breaking some heads,” said former Fed -Governor Kevin Warsh on Fox News Sunday. Warsh, who has consistently been touted as a leading possible compensation for Powell, added that the central bank’s $ 2.5 billion renovation project was among several examples of how bold “lost its way” and said it was time for “regime shift.”
Also appeared on television on Sunday and also another challenger to lead a post-powell-fed, National Economic Council director Kevin Hasset said the president’s possible power to shoot Jerome Powell “will be seen on … But certainly if there is reason, he does.”
The latest angle of attack against Powell is Fed’s $ 2.5 billion renovation project. Powell is being questioned not only about the huge expense, but whether he may have misleading Congress in his testimony of the renovation. Office of Management and Budget (Omb) Director Russ Vought Last week sent Powell a list of questions about the project.
Fed Over the weekend, a new FAQ page created on its website to give its side of the story.
Trump does not light up
Adding his comments over the weekend said the president that it would “be a good thing” for the country if Powell was to quit.
“Jerome Powell has been very bad for our country,” he added. “We should have the lowest interest rates on the ground and we don’t. He just refuses to do it.”
“I don’t know what he knows about building, but you’re talking about cost overrun,” Trump said of $ 2.5 billion renovation. He recalled that the project was approved and began to move on while Joe Biden was still president.
Regulatory angle too
While Powell has kept a public neutral attitude towards crypto, a new bold chair could be seen as a positive for society, even beyond what would certainly be lighter monetary policy.
Over the years, Powell has maintained his attitude that Bitcoin is a competitor to gold rather than for the US dollar, as people do not use it as a form of payment, but rather as an investment vehicle.
However, he has repeatedly called for clearer regulation, specifically about stableecoins and their risks of financial stability as the industry continued to grow more mainstream. He has also emphasized the importance of consumer protection as well as concerns about “spreading” practices, where financial institutions are forced to cut ties with cryptic companies due to the risks associated with the asset class.
