Powell and Trump had their first meeting at the White House.
Even before returning to the presidency, Trump had already had friction with the Fed leader.
Different people from the enthusiastic community of Bitcoin (BTC) and the financial sector have expressed the impact that a leadership change could have on the Federal Reserve (Fed), the US Central Bank, although there is no guarantees that this will happen.
The comments arose after the first meeting Donald Trump, president of the United States, and Jerome Powell, president of the Fed, last Thursday at the White House. After the meeting, both made clear their opposite positions on the right time to reduce interest rates.
Ran Neuner, Trader and founder of the YouTube channel Crypto Banter, He warned that the rumors that began to circulate on social networks that the official would have been forced to resign by Trump today They are very unlikely to be certainsince there is no evidence of it.
In addition, «Powell has always defended the independence of the Fed and I think he would fight for her; It is that type of person, ”he stressed.
Nevertheless, Neuner clarified that an eventual Powell’s departure from the Fed could have serious consequences for financial assets: «The markets would collapse! There is something that investors value even more than low rates or money impression: the independence of the Federal Reserve and the separation of powers ».
Some users were worried about what could happen to a premature resignation of Jerome Powell. Source: @Cryptomanran.
From another Perspesctive, Mindy Diane Feldman, advisor in the real estate sector, express His concern about the possible consequences of a change in the Fed in case of confirming the rumors, suggesting that Trump could name someone related to his interests: “The immediate impact and long term to designate a complacement successor would be devastating for the bond market and accelerate the decline of the dollar as a world reserve currency.”
In tune, other commentators on the networks were skeptical about the rumors of a possible Powell resignation, although with expectations Alcistas for Bitcoin and the markets in general if it occurred because a new administration could expedite cuts of fees that increase liquidity.
Beyond the speculation, the looks are put in the next Powell speech planned for this afternoon. The reason is that Any message that gives about the direction of monetary policy could cause strong reactions in the markets.
For his part, Dariusz Kowalczyk, analyst and co -founder and COO of the Bitwardinvest and Seedhuinterhq firms, He joined to the expectations that are circulating on Powell’s next speech. The analyst and trader pointed out that any mention that makes cuts in rates or new measures to inject money into the economy could shake the markets ».
As usual, Powell is expected to address in his speech the current state of the US economywith emphasis on growth, employment and inflation. In this sense, the community remains attentive to any reference to global financial stability and the impact of monetary policy against competitors such as China, a voltage point indicated by the White House.
Powell and Trump: What did they talk about?
After the first meeting with Trump, the Federal Reserve explained that the meeting was convened by invitation from the president and that both addressed issues related to economic growth, employment and inflation. The Fed too clarified that Powell did not share his expectations about monetary policybeyond reiterating that any decision will depend completely on incoming economic data and how they influence economic perspectives.
In addition, the president of the agency reiterated that both he and his colleagues from the Federal Open Market Committee (FOMC) will establish monetary policy “as provided by law”, with the aim of promoting the maximum employment and price stability, based on “a careful, objective and apolitical analysis.”
For its part, from the White House, press secretary Karoline Leavitt Indian That Trump expressed his disagreement with the current Fed position, arguing that “by not lowering interest rates, he is placing us at economic disadvantage against China and other countries.” This is something that on multiple occasions the president has already made known, even saying that he saw Powell’s resignation necessary, as cryptootics reported.
However, according to Leavitt, Powell’s possible dismissal was not a topic of conversation during the meeting. Therefore, it is crucial to prudence the comments of those who encourage these rumors.
