๐จ๐บ๐ธ WHITE HOUSE VS FED: A MONETARY POWER STRUGGLE EMERGES ๐จ
Political pressure on the U.S. Federal Reserve is rising as the battle over interest rates and economic control heats up.
With Jerome Powellโs term as Fed Chair ending in May 2026, President Trump is reportedly considering unusual legal measures to challenge Powellโs leadership before the term expires. The dispute reportedly points to cost overruns and management concerns tied to the Federal Reserveโs headquarters renovation.
๐ WHAT WE KNOW SO FAR
โข โ๏ธ Legal leverage discussed: โFor-causeโ removal is being examined
โข ๐ฅ Replacement talk grows: Kevin Hassett and Kevin Warsh are key names
โข ๐๏ธ Institutional risk: Courts could be drawn into a debate over Fed autonomy
๐ WHY THIS MATTERS FOR MARKETS
Trump favors faster and deeper rate cuts to stimulate growth
Powell maintains focus on inflation control and policy independence
That gap creates:
โก Rate path uncertainty
โก Pressure on the U.S. dollar
โก Heightened sensitivity in risk assets, including crypto
Markets react to direction โ not just decisions.
โฐ THE TIMELINE
๐ Powellโs term ends: May 15, 2026
โ ๏ธ Early removal would set a never-seen-before precedent
โ THE KEY QUESTION
Who ultimately shapes U.S. monetary policy in the next cycle?
The Federal Reserve โ or political leadership?
Macro risk remains elevated.
