Federal Reserve Chair Jerome Powell is reportedly weighing the possibility of stepping down from his position, according to multiple sources familiar with the matter. The bombshell revelation has sent shockwaves through financial markets, with Bitcoin surging past $118,000 to new all-time highs as investors anticipate a potential shift in monetary policy.
Powell Under Mounting Pressure from Trump Administration
The resignation rumors come amid escalating tensions between Powell and President Trump, who has repeatedly criticized the Fed Chair's approach to interest rates. Trump recently urged Powell to resign immediately if he misled Congress, marking a significant escalation in their ongoing public dispute.
"Powell considering resigning? Cut rates & send it?" posted prominent crypto influencer CryptoGodJohn, echoing sentiment across financial markets that view Powell's potential departure as bullish for risk assets.
Market Response Signals Investor Relief
The crypto market's explosive response reflects widespread belief that Powell's departure could pave the way for more accommodative monetary policy. Bitcoin's surge past $118,000 represents a new milestone in its unprecedented run, with the digital asset now up over 100% year-to-date.
"Jerome powell resignation = trump puts a pawn in control = infinite rate cuts = devaluation of the dollar somehow accelerates = bitcoin never goes down again?" questioned notthreadguy, capturing the market's speculative fervor around potential policy changes.
The Federal Reserve hasn't cut interest rates yet this cycle, making Powell's potential resignation particularly significant for markets hoping for easier monetary conditions. Current fed funds rates remain at restrictive levels, with many investors viewing any dovish shift as highly bullish for risk assets including cryptocurrencies.
Crypto Week Momentum Builds
The Powell resignation rumors coincide with what several officials are calling "Crypto Week" in Washington. US Director of Digital Assets Bo Hines recently declared it's "time to make America the crypto capital of the world," while multiple crypto-friendly bills advance through Congress.
- The GENIUS Act has reached the President's desk
- The Clarity Act advances to the Senate
- Bitcoin ETFs saw their second-largest inflow day in history
- Ethereum ETFs recorded $383 million in net inflows
This confluence of regulatory progress and potential Fed leadership changes has created what many analysts describe as the most bullish environment for cryptocurrencies in years. The timing couldn't be more significant, with institutional adoption accelerating and traditional financial barriers continuing to fall.
What Powell's Exit Could Mean
If Powell does step down, President Trump would have the opportunity to nominate a Fed Chair more aligned with his economic vision. This could include someone more willing to pursue aggressive rate cuts or adopt a more Bitcoin-friendly stance on digital assets.
The resignation speculation comes as inflation data shows continued moderation, potentially providing cover for more dovish monetary policy regardless of leadership changes. Truflation readings have fallen below the Fed's 2% target, giving any new chair additional justification for rate cuts.
For crypto markets, the implications extend beyond just monetary policy. A Trump-appointed Fed Chair might be more open to exploring central bank digital currencies or developing clearer regulatory frameworks for digital assets—long-standing industry priorities.
As Bitcoin continues its historic ascent past $118,000, the combination of potential Fed leadership change and growing institutional adoption suggests the cryptocurrency super cycle may be entering its most explosive phase yet. Whether Powell ultimately resigns remains to be seen, but the market has already rendered its verdict on what such a move would mean for digital assets.
