Trump criticizes Powell again as the "wrong person"! Hints at a potential shift in monetary policy, with markets and Bitcoin being highly sensitive

During an interview with Fox Business, former U.S. President Donald Trump openly stated that choosing Jerome Powell as Federal Reserve Chair was “a major mistake,” and he rarely admits that he was more inclined toward Kevin Wirth but did not push for it. He said this decision did not align with his economic philosophy of emphasizing growth and momentum, and the Fed’s policy pace also failed to support that direction. This statement quickly sparked market discussion and was seen as a strong hint about the future direction of monetary policy.

Kevin Wirth is not an ordinary choice. He served as a Federal Reserve Board member from 2006 to 2011, deeply involved in decision-making during the global financial crisis, and is known for his hawkish stance on inflation. In 2017, he was a top contender for Fed Chair, ultimately ranking second. Trump’s “revisiting old issues” is interpreted by outsiders as a reflection on past decisions and signals a reconsideration of future policy candidates.

The conflict between Trump and Powell has long existed. During the Fed’s series of rate hikes in 2018, Trump publicly criticized them multiple times, believing that tightening policies suppressed economic expansion and weakened competitiveness. Even after the pandemic and changing circumstances, this dissatisfaction has not dissipated. Now, with Powell’s term extending until 2028, Trump’s recent remarks, though not naming a replacement, have prompted markets to reassess potential policy shifts at the Fed.

Changes in monetary policy have profound impacts on risk assets. An easing environment often boosts liquidity, which is a key driver of volatility in crypto markets and tech stocks. Looking back at 2020 to 2021, aggressive easing by the Fed coincided almost exactly with Bitcoin’s sharp rise. Therefore, Trump’s comments are seen as a potential macro variable that could influence investor perceptions of interest rates, the dollar’s trajectory, and the outlook for digital assets.

This is not just a political statement but also a test of policy direction. For traders, changing expectations mean new opportunities; for long-term investors, it requires re-evaluating macro opportunities and risks. The Fed’s next move is once again drawing global capital’s attention.