Jerome Powell’s Possible Resignation
Background and Political Pressure
Jerome Powell, head of the US Federal Reserve, has been under massive pressure from Donald Trump for months. Trump publicly demands a radical shift in monetary policy – particularly a drastic interest rate cut of 300 basis points – and threatens Powell’s resignation. Officially, Powell has not yet announced his resignation, but according to media reports, preparations for it are already underway behind the scenes.
Trump argues that such an interest rate cut would save the US over a trillion dollars annually. However, experts consider this calculation to be populist: Only a part of the US national debt is actually interest-relevant; Trump’s calculation also includes internal state debts, which significantly exaggerates the savings.
Market Reactions
There is nervousness in the financial markets: The yields on US government bonds have recently risen significantly. Many investors do not believe that Powell’s departure would automatically lead to lower interest rates or an economic boom. Rather, there is uncertainty about how independently the Fed can act in the future.
Elon Musk and the Crypto Revolution
Musk as a Driver of the Crypto Trend
Elon Musk is one of the most prominent advocates of cryptocurrencies like Bitcoin. His companies (Tesla, SpaceX) have previously accepted Bitcoin as a means of payment or invested in it. Musk’s statements on social media regularly influence prices and sentiment in the markets.
Bitcoin as a World Currency?
Musk has repeatedly emphasized that he sees the potential for Bitcoin to rise to the status of global reserve currency – especially in light of a possible weakening of the fiat money system due to expansive monetary policy or political instability.
Impact on Investors
Monetary Policy Uncertainty
A possible change at the top of the Fed could lead to increased volatility in the markets in the short term. The independence of the central bank is considered a central element for trust in the financial system; political influence is being closely monitored.
Cryptocurrencies as an Alternative?
In this context, alternative asset classes like Bitcoin are gaining further significance. Many investors see it as protection against inflation and against government interventions in the monetary system.
Conclusion
The combination of political attacks on the independence of the Fed, expansive calls for low-interest policies, and the growing acceptance of cryptocurrencies by figures like Elon Musk points to significant upheavals:
- Monetarily: The credibility and independence of the fiat system are in question.
- Financially: Investors are increasingly searching for alternative stores of value.
- Technologically: Digital currencies could gain importance in the long term – especially if traditional systems come under pressure.
For investors, this means: Vigilance towards monetary policy decisions and diversification are becoming increasingly important.