Trump Adviser Calls for Powell Exit as Bitcoin Watches Fed’s Next Move

President Donald Trump’s top economic adviser, Kevin Hassett, is urging former Federal Reserve Chair Jerome Powell to resign from the Fed’s Board of Governors. This could have implications for U.S. monetary policy and Bitcoin.

Hassett suggested Powell “move on” following an internal oversight report of problems with Fed management of renovations at the central bank’s Washington, D.C., office. Trump also expressed support for forcing Powell to resign from the Fed board and other hostility toward the former chair.

Powell has been working at the Federal Reserve since May, when Chairman Kevin Warsh was appointed. Powell is important because he continues to serve as one of 12 voting members of the Federal Open Market Committee and has a vote on interest rate policy.

Powell Exit Could Reshape Fed Rate Expectations

If Powell resigns before the end of his term as governor, Trump can appoint a replacement governor, pending Senate approval. That wouldn’t necessarily be positive for Bitcoin if Powell resigned, though. It would depend on the replacement’s views on policy issues, including interest rates.

The discussion comes after the Federal Reserve raised its target rate 25 basis points to 3.75%-4% on Sept. 16. All Federal Reserve policymakers voted to increase the target rate. This is the first rate hike since 2023. Inflation is still higher than the Federal Reserve’s 2% target. Other economic factors and data are considered in decisions about interest rates and inflation.