Bitcoin and gold respond to the escalating clash between Trump and Powell.

crypthub

about 5 hours ago

Rising Political Tensions

U.S. President Trump escalated international rhetoric over the weekend, targeting nations such as Iran and Cuba. His provocative statements have added to an already volatile geopolitical climate. Domestic attention has shifted to his renewed attack on Federal Reserve Chair Jerome Powell.

Trump vs. Powell Conflict

Since winning the 2024 election, Trump has repeatedly urged lower interest rates and threatened to fire Powell, despite having nominated him. Powell traditionally avoided public comment, offering only silence when questioned about Trump’s critiques. The dispute intensified when Powell announced DOJ subpoenas and a possible criminal indictment related to his Senate testimony.

Powell's Legal Pushback

Powell framed the legal pressure as retaliation for the Fed’s independent rate decisions, marking his first public rebuttal. He suggested the actions are coordinated to influence the upcoming FOMC meeting, where a pause in rate cuts is expected. Analysts warn the confrontation could further destabilize policy expectations.

Market Impact

The political clash spurred safe‑haven buying, pushing gold and silver to new highs. Bitcoin surged past $92,000 before retracing to just above $91,000. Continued volatility is anticipated as the Trump‑Powell rivalry unfolds.