Traders on Polymarket Are Betting Against Jerome Powell's Removal This Year Despite Criticisms from US President Donald Trump

Trump has consistently called on Powell to cut interest rates, which would be a positive for the crypto market. However, Powell has refused to listen so far.

Traders on Polymarket are betting against Donald Trump removing Jerome Powell this year despite reports that the US president has been discussing the move for months.

According to the latest data from the prediction platform, there is only a 19% chance of Donald Trump firing Jerome Powell by December 2024. This probability has decreased by 4% in the last 24 hours.

However, a recent report by the Wall Street Journal (WSJ) claims that Trump has been discussing the possibility of firing Powell for months, including in meetings with his potential replacement, Kevin Warsh, earlier this year.

As previously reported by CoinGape, Donald Trump slammed Jerome Powell again on Wednesday, stating that the Fed Chair is “always too late and wrong.”

The US president added that Powell’s termination “cannot come fast enough,” as the European Union (EU) is about to cut interest rates for the seventh time. However, Powell and the Fed are still holding tight on slashing monetary policies despite the pressing need, according to Trump.

After meeting with Italy’s Prime Minister, Giorgia Meloni, Trump made some comments about Powell again, sparking discussions on whether the US president would remove him soon.

During a joint press conference with Meloni, Trump stated that he is not happy with Powell and that the Fed Chair would leave if he asked him to.

The US president, who has openly criticized Powell on multiple occasions, expressed his displeasure once again, adding that he does not believe Powell is doing his job.

Moreover, the White House confirmed that Trump is studying whether he has the power to remove Powell. However, Powell himself has previously asserted that the US president has no legal authority to terminate him.

What Does This Mean For Crypto?

This development could have implications for the crypto market, as Bitcoin price and other altcoins have shown a greater sensitivity to monetary policies compared to other macroeconomic fundamentals.

Therefore, Donald Trump firing Jerome Powell or the Fed Chair resigning could be viewed as a positive factor for the market. This is because Powell has indicated that he has no immediate intention to lower rates.

In his recent speech at the Economic Club of New York on Monday, Powell highlighted that the Federal Reserve would likely keep interest rates in their present range for now. He also noted the administration’s focus on tariffs to mitigate inflation, contrasting it with the European Central Bank’s (ECB) seventh rate cut this year.

Furthermore, traders will be following any updates on Kevin Warsh, who appears to be more crypto-friendly. However, Warsh once spoke in favor of Central Bank Digital Currencies (CBDCs) and expressed an opinion against private stablecoins. This stance contradicts Trump’s policies, as the US president has already signed an executive order prohibiting the creation of a CBDC.

Instead, Trump seems more supportive of cryptocurrencies like Bitcoin. Back in June, Trump stated that he is not a fan of Bitcoin and prefers the US dollar.

At present, all attention will be directed towards the Fed’s next move and whether they will cut interest rates. Despite Powell’s stance, Bank of America predicts four Fed rate cuts this year, with the first anticipated at the May FOMC meeting.