On Wednesday, Bitcoin experienced a notable surge of 6%, elevating its price to over $93,000. This upward movement came after U.S. President Donald Trump softened his previously aggressive stance towards Federal Reserve Chair Jerome Powell and hinted at a potential reduction of tariffs on Chinese imports.
During a press briefing from the Oval Office on Tuesday, Trump affirmed his commitment to Powell by stating that he had “no intention of firing” him.
Additionally, Trump indicated that the tariffs implemented by his administration on China could see a significant decrease, asserting they “will come down substantially,” although he noted that they “won’t be zero.”
Bitcoin Breakout Follows Trump’s Retreat from Fed Showdown
This announcement represented a drastic change in Trump’s rhetoric compared to earlier in the week, when he referred to Powell as a “major loser” and suggested he might be removed from his position. Despite appointing Powell to lead the Federal Reserve in 2017, Trump has consistently criticized the bank for not lowering interest rates more aggressively.
.@POTUS on Fed Chair Jerome Powell: “I have no intention of firing him. I would like to see him be a little more active in terms of his idea to lower interest rates … but, no, I have no intention to fire him.” pic.twitter.com/PoWuuCqUwT
— Rapid Response 47 (@RapidResponse47) April 22, 2025
The market reaction was immediate, with Bitcoin reaching a price of $93,055, reflecting over an 11% increase for the week. U.S. stock futures also rallied, seeing gains in the Dow, S&P 500, and Nasdaq during after-hours trading.
Typically, cryptocurrencies, including Bitcoin, thrive in environments marked by policy uncertainty or diminished trust in conventional financial institutions. Trump’s recent criticism of the Fed, combined with concerns of political interference, seems to have bolstered interest in decentralized assets that function outside the scope of central bank regulations.
Trump Retreats on Powell Threat After Market Jitters
Trump’s latest remarks followed reports indicating that Kevin Hassett, Director of the National Economic Council, had raised legal questions regarding the president’s authority to dismiss Powell, a scenario that unsettled markets and raised alarms among economists regarding the potential compromise of the Fed’s independence.
The Federal Reserve has adopted a cautious approach towards further interest rate reductions, highlighting persistent inflation levels that exceed the 2% target. Recently, Powell cautioned that the ongoing tariffs might exacerbate inflationary pressures. Following that, Trump had responded with harsh critiques of Powell’s management of the situation and made veiled threats about his job security.
However, Trump tempered these remarks on Tuesday, clarifying to reporters: “The press runs away with things. No, I have no intention of firing him.”
The post Bitcoin Rips 6% Higher Above $93K After Trump Ditches Powell Firing Plans appeared first on Finance Newso.
