Trump Adviser Calls for Powell Exit as Bitcoin Watches Fed’s Next Move
Trump adviser Kevin Hassett urges former Fed Chair Jerome Powell to resign from the Board of Governors, sparking discussions on how a potential successor could influence U.S. monetary policy and Bitcoin markets.
Kevin Hassett, President Donald Trump’s chief economic adviser, is pressing Jerome Powell, the former Federal Reserve chair, to step down from the Fed’s Board of Governors—a move that carries potential consequences for both U.S. monetary policy and Bitcoin.
Following the release of an internal oversight report detailing management issues regarding renovations at the central bank’s Washington, D.C., headquarters, Hassett suggested that Powell should “move on.” President Trump has also voiced hostility toward the former chair and expressed support for compelling Powell to resign from the board.
Powell has remained at the central bank since May, following the appointment of Chairman Kevin Warsh. His continued presence matters because he maintains his position as one of the 12 voting members on the Federal Open Market Committee, giving him a direct say in interest rate policy.
Powell Exit Could Reshape Fed Rate Expectations
Should Powell vacate his governor seat prior to the conclusion of his term, President Trump would have the opportunity to name a successor, subject to Senate confirmation. A resignation would not automatically benefit Bitcoin, however; the market impact would hinge entirely on the incoming appointee’s stance on monetary policy and interest rates.
This pressure arrives on the heels of the Fed’s September 16 decision to lift its target interest rate by 25 basis points to a range of 3.75%–4%. The rate hike received unanimous backing from all policymakers and marked the first increase since 2023. With inflation persisting above the central bank’s 2% objective, officials continue to weigh various economic indicators when evaluating inflation and interest rates.
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Despite a sluggish start around the September meeting, Bitcoin later staged a recovery, climbing past $87,000. This upward momentum was fueled by rising corporate and institutional demand for U.S. spot Bitcoin exchange-traded funds, which helped offset the headwinds of tighter monetary conditions.
Could Lower Rates Give Bitcoin a Tailwind?
While a more dovish central bank could lift Bitcoin prices by sparking expectations of reduced interest rates, lower Treasury yields, and improved liquidity, Powell’s departure alone is unlikely to trigger this shift.
Treasury yields remain a critical driver for Bitcoin. Elevated yields can tighten financial conditions and present competing returns to investors hesitant to expose themselves to Bitcoin’s price volatility.
Beyond Federal Reserve expectations, Bitcoin’s valuation is influenced by shifts in Treasury yields, institutional engagement, and alternative investment vehicles like ETFs.
Powell’s influence stems largely from how a replacement governor might alter the balance of perspectives within the FOMC. According to the Federal Reserve’s official portal, Powell remains a voting FOMC member for 2026 alongside fellow governors and regional bank presidents.
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Attention now turns to the upcoming Fed gathering scheduled for October 27–28, where rate outlooks will take center stage. As markets reassess the probability of further monetary tightening, cryptocurrency traders are monitoring economic updates and regulatory developments closely.
Ultimately, while an exit by Powell could introduce new dynamics to digital asset markets, the ultimate impact on BTC prices will depend heavily on the identity of his successor and the resulting shifts in future U.S. interest rate projections.
