The article discusses the potential consequences if US President Donald Trump were to fire Jerome Powell, the chair of the Federal Reserve. Trump seeks to lower the Fed Funds Rate to stimulate the economy but faces Powell's resistance to maintain the Fed's independence. If Trump succeeds in firing Powell, it could disrupt investors' confidence in US Treasuries, leading to difficulties in financing the country's $30 trillion debt. This could result in increased interest rates and further financial strain on the US economy. For cryptocurrencies, a Fed crisis may drive capital away from traditional assets into crypto, potentially leading to a surge in their value. However, the stability of USD-denominated stablecoins like USDC and USDT could be jeopardized if the Treasury defaults, causing them to become undercollateralized and possibly resulting in a market collapse. There are concerns that a weakened dollar might shift trade to other currencies, empowering regulators in regions like the EU and China, which could lead to over-regulation impacting the crypto ecosystem. The article emphasizes that the outcome remains uncertain but could significantly influence the future of cryptocurrencies.

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