Polymarket Cuts Odds of Powell’s Ouster as Trump Backs Fed Chair

According to decentralized prediction platform Polymarket, odds of Powell’s early exit have declined to 14%, down nine percentage points within 24 hours.

The shift came after Trump publicly dismissed speculation that he intended to replace Powell, telling reporters he had “no intention” of removing him. Although the president reiterated his preference for more aggressive interest rate cuts, he confirmed that Powell would remain in his role as reported by Reuters.

This marks a significant turnaround from last week, when rumors swirled about the White House scouting for Powell’s replacement. Those speculations gained traction after Treasury Secretary Scott Bessent alluded to internal disagreements over monetary policy, particularly as Trump presses for deeper rate cuts to counterbalance economic drag from new tariffs on Chinese imports.

Powell, however, has maintained a cautious stance, resisting additional rate cuts while downgrading the Fed’s 2025 economic forecast. The latest signal of support from Trump appears to have stabilized market sentiment, easing concerns about abrupt leadership changes at the central bank.

The cryptocurrency market responded positively . Bitcoin climbed past $93,000—its highest in weeks—bolstered not just by Trump’s comments on Powell, but also his softening rhetoric on trade tensions with China. The Crypto Fear and Greed Index surged into “Greed” territory, rising 25 points to 72, a sign of growing investor optimism.

With over a year left in Powell’s term, analysts say sustained clarity on monetary policy from the Trump administration will be critical in calming investor nerves and preserving stability across both traditional and crypto markets.

Meanwhile, Trump’s broader economic policies may have additional implications for the crypto space. The administration’s aggressive tariff measures are expected to dampen demand for Bitcoin mining rigs in the U.S. — a development that could tilt the advantage toward overseas mining operations. 

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