Trump Slams Fed Chair Jerome Powell as a “Fool,” Hints at Potential Removal
Political fireworks just hit monetary policy. Former President Donald Trump's latest broadside—labeling Federal Reserve Chair Jerome Powell a "fool"—signals a brewing storm for central bank independence and, by extension, the entire financial landscape.
The Powell Problem: A Political Target
It's not just name-calling. The implied threat of removal cuts straight to the heart of a long-held norm: the Fed's operational separation from partisan politics. Markets hate uncertainty, and nothing spells uncertainty like a central bank chief potentially on the chopping block over interest rate disagreements.
Why Crypto Watchers Are on Edge
For the digital asset space, this isn't just political theater. The Fed's interest rate decisions directly influence liquidity, risk appetite, and the dollar's strength—the triple engine driving crypto valuations. A politicized Fed could mean erratic policy shifts, kneejerk reactions to market sentiment, or decisions made for political gain rather than economic stability. Volatility, anyone?
The Bigger Picture: Institutional Credibility at Stake
The real casualty here is trust. The modern financial system, from Wall Street to decentralized exchanges, operates on a fragile consensus that major institutions will follow their mandates. Undermining that doesn't just rattle traders; it fuels the very narrative that alternatives like Bitcoin were built for. After all, why trust a system where the referees can be fired by the players?
A cynical take? For traditional finance, this is a crisis. For crypto, it's just another Tuesday—and more proof that the old guard's stability was always more illusion than fact.
New assault on Federal Reserve Leadership.
In a press conference on December 29, 2025, at Mar-a-Lago, former U.S. President Donald Trump stepped up his attack on Federal Reserve Chair Jerome, openly referring to him as a fool and incompetent. The comments are the most direct assault on US President on the leadership of the Federal Reserve so far, casting new doubts on the independence of the central bank of the United States.
Source: CryptoAman X
Trump made the comments while addressing the media alongside Israeli Prime Minister Benjamin Netanyahu, using the opportunity to revisit long-standing grievances over U.S. monetary policy and Federal Reserve governance.
Lawsuit Threat Over Fed Renovation Costs
A central focus of Trump’s criticism was the ongoing renovation of the Marriner S. Eccles Building, the Federal Reserve’s headquarters in Washington, D.C. Trump claimed the project’s cost has ballooned to over $4.1 billion, calling it “the highest price in the history of construction.”
He accused Jerome of “gross incompetence” and said he is considering filing a lawsuit against the Federal Reserve chair over the alleged cost overruns. However, multiple reports and prior statements from Powell indicate the actual estimated cost of the renovation stands closer to $2.5 billion, significantly lower than Trump’s claim.
Though Donald was corrected in public earlier this year, he has again used the larger number, and it is a pattern of exaggerating the renovation costs to support his criticism.
I'd Love to Fire Him: Trump's Latest Stance.
In the press conference, He publicly claimed that he WOULD love to fire Powell and that there is still the possibility of him being fired. He also condemned President Joe Biden on the reappointment of Powell without explanation because Donald himself appointed Jerome in 2018.
Trump further hinted that a replacement for Powell could be announced as early as January, signaling that preparations are underway to reshape Federal Reserve leadership should he regain influence over the process.
Contradictions and Comparisons to White House Projects
The US President contrasted the Federal's renovation with his own construction projects, including a new WHITE House ballroom, claiming it would cost “a tiny fraction” of the renovation budget. However, he later acknowledged that the ballroom’s cost had doubled from $200 million to $400 million, citing additional security requirements.
Market and Crypto Implications
The new pressure has attracted interest in the financial and cryptocurrency markets. According to the analysts, any effort to undermine Fed independence may result in the loosening of monetary policy, which in the past has been good news to Bitcoin and altcoins, particularly when the market is volatile.
With Donald still questioning the Reserve's authority, investors are keen to monitor the effects of political influence on monetary policy and Fed interest rates on market sentiment in the coming months.
Disclaimer: This is not financial advice. Please DYOR before investing. CoinGabbar is not responsible for any financial losses. crypto assets are highly volatile, and you can lose your entire investment.
