All things equal -equal, easier financial policy tend to be good for risk ownership -crypto certainly among them. Bitcoin rallied above $ 120,000 at the first time on the weekend as a pressure on Hawkish US Federal Reserve Chairman Jerome Powell to go down or shoot even higher. Coincidentally?
To check, Jerome Powell – who rushed to 75 basis of rates of decrease in rate before the election in 2024 – quickly moved to a more hawkish bearing following Donald Trump’s election (Although he allowed another 25 basis of cut cut after November)And it is famous not to sit well with the President.
“Obviously, it’s about breaking some heads,” Former Fed Governor Kevin Warsh said On Fox News on Sunday. Warsh, who continues to be -tout as a leading possible replacement for Powell, added that the $ 2.5 billion central bank renovation project was among the many examples of how the Fed was lost “and said it was time for” regime change. “
It also appears on TV on Sunday and another contender who leads a post-powell fed, the director of the National Economic Council Kevin Hasset said the president’s possible power to burn Jerome Powell was “looking … but certainly if there was a reason, he did.”
The latest angle of attacking against Powell is the $ 2.5 billion Fed renovation project. Powell is discussed not only at a huge cost, but more than if he could have misled Congress in his testimony of repair. Management office and budget (OMB) Director Russ Vought last week sent Powell a list of questions about the project.
Fed on the weekend created a new FAQ page on its website to give the side of the story.
Trump is not relieved
Adding his comments on the weekendThe president said it would “be a great thing” for the country if Powell would come out.
“Jerome Powell is so bad for our country,” he added. “We should have the lowest interest rate in the world, and we don’t. He just refused to do it.”
“I don’t know what he knows about developing, but you’re talking about the cost,” Trump said of $ 2.5 billion repair. He reminded that the project was approved and began to move forward while Joe Biden was still president.
The angle of regulation also
While Powell maintains a public neutral bearing towards the crypto, a new Fed seat can be seen as a positive for the community no matter what will surely be an easier financial policy.
Powell, over the years, has maintained his stance that Bitcoin is a competitor in gold than the US dollar given that people do not use it as a form of payment but rather as an investment vehicle.
However, he repeatedly called the clearer regulation, particularly around the stablecoins and their risks to financial stability as the industry continued to grow more. He also emphasized the importance of consumer protection as well as concerns about “debanking” skills in which financial institutions are forced to cut relationships with crypto companies due to risks associated with the asset class.
