The Chairman of the Board of Fannie Mae and Freddie Mac, William J. Pulte has reacted to reports that Fed Chair Jerome Powell is considering resigning. Pulte posted on his official X account that he is encouraged by the reports of Chair Powell considering to resign.
“I’m encouraged by reports that Jerome Powell is considering resigning. I think this will be the right decision for America, and the economy will boom,” Pulte noted.
The Beef Between Chair Powell and President Donald Trump
Although not officially confirmed, the reports that Fed Chair Powell is considering to resign stems from the misalignment with the Donald Trump administration. In the past few months, President Trump has urged Chair Powell to lower the interest rates to bolster the country’s economic growth.
“Tech Stocks, Industrial Stocks, Nasdaq, hit all-time high, record high! Crypto through is the roof, Nvidia is up 47% since Trump tariffs. USA is taking in hundreds of billions of dollars in tariffs … .The Fed should rapidly lower rates to reflect this strength,” Trump noted on TruthSocial.
According to President Trump, the Fed ought to have cut its benchmark rate by 3 points, since the inflation has declined. However, the Fed Chair has reiterated several times that the tariffs will likely increase inflation amid weakening U.S. dollar.
What Next for Crypto?
If Fed Chair Powell resigns in the coming days as predicted by Pulte, President Trump will replace him with his team members. As a result, the odds of several rate cuts in the United States before the end of 2025 will skyrocket.With the crypto market already in the early stages of a parabolic rally, several rate cuts could further fuel the underlying bullish outlook.
