Trump Considers Replacing Fed Chair Powell With Bessent Amid Interest Rate Policy Disputes
President Trump is reportedly considering replacing current Federal Reserve Chair Jerome Powell with Treasury Secretary Scott Bessent due to ongoing disagreements over US interest rate policy. Trump has publicly criticized Powell for not lowering interest rates and has expressed frustration with the Federal Reserve’s independent stance. Legal complexities exist as Powell’s term lasts until May 2026, and Supreme Court protections mean he cannot easily be removed. However, Trump’s administration is moving early, potentially to align monetary policy leadership with its economic priorities, suggesting a more accommodative stance toward interest rates if Bessent or a similar candidate is appointed. Other potential candidates include National Economic Council director Kevin Hassett, current Fed governor Christopher Waller, and former World Bank President David Malpass. The possibility of a leadership shake-up at the Fed is creating uncertainty in financial markets, with analysts warning that prolonged debate over Fed governance could affect investor confidence, the value of the US dollar, and overall market stability. Market participants are advised to watch for further developments, as changes in Fed leadership and policy direction could have significant implications for crypto market volatility, dollar-denominated assets, and global risk appetite.
Neutral
The possible replacement of Fed Chair Jerome Powell with Scott Bessent reflects unresolved disputes over US interest rate policy. While this introduces legal and political uncertainty, it does not signify an immediate shift in policy. Historically, speculation over Federal Reserve leadership has led to short-term market volatility, particularly in the US dollar and equities, but without clear policy direction, markets generally trade sideways until a decisive change occurs. This situation warrants caution among crypto traders, as uncertainty surrounding US monetary policy could increase volatility in risk assets, including cryptocurrencies, but until any change is made official or policies shift, a neutral outlook is most appropriate.