Powell Removal Threat Hit USD, Treasuries & Crypto
Federal Reserve Chair Jerome Powell dey face calls to comot am as drama dey over $2.5 billion Fed HQ renovation wey cause political backlash. President Trump and Congress no too support di plan, dem even kick off OMB investigation and people dey talk say Powell fit comot. Scott Bessent, Kevin Warsh and Kevin Hassett fit take over, and dis one dey make people worry about Fed independence.
Deutsche Bank warn say market no sabi di wahala well well. If dem comot Powell sharp sharp, trade-weighted dollar fit drop 3-4% and Treasury yields fit rise 30-40 basis points for one day. Dis kin wahala fit make money for risk assets run comot and cause big market movement.
Crypto traders need to watch di Powell removal threat, dollar risk and Treasury yields well. If Fed transition scatter scatter, markets fit shake and quick quick people go switch Bitcoin (BTC) and XRP, but if dem go dovish later, e fit make more money enter digital assets.
Bearish
For short term, di threat wey dem talk about remove Powell fit make cryptocurrencies go down. If dem suddenly change pesin wey dey lead, e fit cause dollar sharply fall and Treasury yields go up sharply, wey go comot money wey dey for risky assets and make market get wahala. This kain situation dey usually put pressure on prices of digital assets as investors dey try find safer or more liquid assets. Even though the pesin wey go follow fit get soft approach – wey fit make crypto better for medium term – but the immediate wahala and how Fed independence don shake go make crypto market get wahala and prices go fall.