Trump hints that Powell may be replaced, Fed Chair candidate becomes the focus

【BlockBeats】Trump recently revealed some new developments regarding Federal Reserve Chair Jerome Powell during an interview. On January 15th, when discussing the Department of Justice’s criminal investigation into Powell, he said he currently has no plans to dismiss him but also hasn’t completely ruled out the possibility.

Trump’s exact words were “I currently have no such plans,” but he quickly added that both sides are now in a “wait-and-see mode,” and the final decision will depend on how things develop. He emphasized that it’s too early to say now, and the timing isn’t right. This attitude can be seen as neither fully abandoning nor immediately acting, somewhat like observing how the situation unfolds.

In terms of timing, Powell’s term as Federal Reserve Chair will end in May, but he can remain on the Federal Reserve Board of Governors until 2028. So, the real uncertainty still lies in the chair position.

Interestingly, Trump hinted at potential replacements. He suggested that former Federal Reserve Governor Kevin Warsh or current National Economic Council Director Kevin Hasset might be considered for the role. As for current U.S. Treasury Secretary Janet Yellen, Trump explicitly ruled out her possibility, citing her desire to stay in her current position.

These personnel changes involve the direction of Federal Reserve policies, and the crypto market has always been sensitive to Fed developments. Who will lead the Fed directly influences future monetary policy tone, which impacts asset allocation across the board.