Bitcoin Surges as White House Turns Up Heat on Fed Chair Powell
Bitcoin’s rally past $120,000 is fueling speculation that political pressure mounting on Federal Reserve Chairman Jerome Powell could lead to a shake-up in U.S. monetary policy—and possibly, Fed leadership.
Over the weekend, the White House escalated its campaign to replace Powell, amid growing criticism of the Fed’s direction and spending. For markets—especially crypto—this signals potential for easier monetary policy ahead.
Powell Under Fire
Jerome Powell has faced increasing tension with President Donald Trump since the 2024 election. Though Powell delivered 75 basis points in rate cuts before the vote and a final 25-point trim in November, he quickly pivoted to a more hawkish stance afterward—something that hasn’t sat well with the new administration.
Trump and top advisors have since questioned Powell’s leadership. “Frankly, it’s about breaking some heads,” said former Fed Governor Kevin Warsh on Fox News. Warsh, a rumored replacement, criticized the Fed’s $2.5 billion renovation as a sign of “mission drift” and called for “regime change.”
Meanwhile, National Economic Council Director Kevin Hassett said Powell’s job is under legal review: “It’s being looked into… If there’s cause, the president certainly has authority.”
Controversial Fed Renovation Under Scrutiny
The central bank’s $2.5B headquarters renovation is now at the center of the controversy. Lawmakers, including OMB Director Russ Vought, have questioned the cost and Powell’s past testimony regarding it. In response, the Fed released a public FAQ over the weekend to clarify details.
Trump didn’t hold back either. “We should have the lowest interest rate on Earth, and we don’t,” he said. “Jerome Powell has been very bad for our country.” He also blasted the renovation, saying it began under President Biden and has run over budget.
Crypto Could Benefit from Leadership Shift
Crypto traders see a potential Powell exit as a bullish catalyst—not just because of lower interest rates, but due to the possibility of regulatory change.
Powell has generally treated bitcoin as a non-threatening alternative to gold, but he’s called for stricter rules around stablecoins and debanking risks. A new Fed chair might bring a more favorable regulatory tone for digital assets.
Takeaway
With the White House turning up the pressure and bitcoin hitting record highs, the Fed’s leadership is now a central focus for markets. If Powell is replaced, crypto markets could see another leg higher—especially if easier policy and looser regulation follow.
