Powell defends Fed independence amid Trump pressure

Donald Trump escalated his campaign against Jerome Powell by suggesting the Federal Reserve chief should resign or face dismissal, raising renewed concerns about the independence of the US central bank.

Trump reportedly backed former Federal Reserve governor Kevin Warsh as a possible replacement while continuing to pressure the central bank to lower interest rates in support of economic growth.

Powell has repeatedly defended the Federal Reserve’s independence, arguing that monetary policy decisions should remain driven by economic data rather than political demands from the White House.

The latest tensions unsettled markets because the Federal Reserve’s autonomy has historically been viewed as critical to maintaining investor confidence, inflation control and long-term economic stability.

Bitcoin climbed above $92,000 earlier in 2026 during previous clashes between Trump and Powell, reflecting growing investor interest in decentralised assets during periods of uncertainty surrounding traditional monetary institutions.

Unlike central banks, Bitcoin operates on a fixed monetary framework embedded directly into its code, meaning its supply schedule cannot be altered through political pressure or government intervention.

Crypto analysts argued that sustained attacks on Federal Reserve independence could gradually strengthen the long-term case for holding decentralised assets as portfolio hedges against political and monetary instability.

At the time of reporting, Bitcoin price was $81,181.83.