U.S. President Donald Trump has once again launched a scathing attack on Federal Reserve Chairman Jerome Powell, labeling him as 'Too Late' and insinuating that Powell is clinging to his position because he cannot find a job elsewhere. Trump stated bluntly, 'Nobody wants him.' The remarks have ignited widespread discussion across financial and cryptocurrency markets.
Trump's Criticism and Powell's Silence
Trump has long been critical of the Fed's interest rate hikes, arguing they hinder economic growth. This time, he directly questioned Powell's competence and timing. Trump claimed that Powell is 'always one step behind' in responding to inflation and economic stimulus, costing the U.S. economy valuable opportunities. Sources indicate that Powell has not publicly responded to Trump's attack, but his term as Fed Chair is set to end in May 2026. Earlier reports had already confirmed that Kevin Warsh would be sworn in as the new Fed Chair.
Fed Leadership Transition and Market Impact
Trump's criticism comes at a critical juncture for the Fed's leadership transition. Jerome Powell concluded his eight-year term in May 2026, and Kevin Warsh has since taken the oath of office. Warsh, a former Fed governor from 2006 to 2011, is widely seen as a Trump ally who may push for looser monetary policy. Analysts suggest this could be bullish for assets like Bitcoin. Bitcoin prices briefly surged 3% following Trump's remarks, reflecting market optimism about a more accommodative regulatory environment.
Policy Divisions Within the Fed
The latest Fed meeting minutes revealed growing divisions among policymakers in Powell's final months. Some members favored further rate hikes to curb inflation, while others advocated for cuts to support a slowing economy. The minutes highlighted 'policy direction uncertainty ahead of the leadership change'. Meanwhile, upcoming U.S. CPI and PPI data will be crucial for inflation expectations. These economic events, combined with Fed policy, will shape short-term cryptocurrency movements.
Cryptocurrency Market Reaction and Outlook
Trump's attack on Powell has been interpreted by some in the crypto community as an indirect endorsement of decentralized finance. Many investors believe the fragility of the traditional central banking system underscores Bitcoin's value proposition. With Warsh set to take over, expectations of a growth-first monetary policy could drive more capital into alternative assets like Bitcoin. However, regulatory uncertainties remain: the U.S. Congress is deliberating the CLARITY Act, which will define the legal status of crypto assets.
In summary, Trump's comments have heightened concerns over Fed politicization, while Powell's departure marks a new chapter in U.S. monetary policy. For crypto markets, short-term sentiment has improved, but long-term trajectories depend on actual economic data and Warsh's specific policy actions.