Powell Stays at Fed Despite Trump’s Attacks: Bitcoin Plummets as Rate Cut Hopes Fade

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Why Jerome Powell refuses to leave the fed, even after Trump tried to force Him out

During his last press conference as Federal Reserve chair on April 29, Jerome Powell stated he would continue serving on the Federal Reserve Board of Governors after May 15. He explained that legal challenges brought against the institution by former President Trump had forced him to remain until the investigations are complete.

Summary

  • Powell cited the DOJ’s criminal investigation into the Fed’s headquarters renovation and DC Attorney Jeanine Pirro’s public warning that she would “not hesitate to restart” the probe as his reasons for staying on the board.
  • The FOMC meeting produced four dissents, the most divided Fed vote since October 1992, with three members wanting the easing bias removed from the statement and one wanting an immediate rate cut.
  • Bitcoin dropped from $77,000 to $74,914 following Powell’s announcement, Bitcoin ETFs logged $137.77 million in outflows snapping a nine-day inflow streak, and rate cut odds for 2026 collapsed sharply.

Jerome Powell will continue serving on the Federal Reserve Board even after his term as chairman ends on May 15th. This makes him the first departing Fed chair to remain on the board since 1948. According to CoinGape, Powell announced this at his last press conference as chairman, explaining that recent events led him to feel he needed to stay and oversee them. He intends to take a less visible role once Kevin Warsh joins the board, and will not attempt to exert influence as a former chairman.

Jerome Powell Says Legal Attacks on the Fed Are “Unprecedented in Our 113-Year History”

Jerome Powell says he’ll remain at the Federal Reserve until the Justice Department’s investigation into renovations at the Fed’s headquarters is completely finished and resolved with full transparency. This investigation also included scrutiny of his statements to Congress. While former DC Attorney Jeanine Pirro closed her office’s part of the probe, she left the door open to reopening it if new evidence emerges. Former President Trump suggested Powell wants to stay because he fears he can’t find another job. Treasury Secretary Bessent noted it would be unusual for a departing chair to continue serving as a governor. Meanwhile, the Federal Open Market Committee decided to keep interest rates steady, but the fact that four members disagreed – three wanting to signal potential rate hikes and one advocating for an immediate cut – was a key takeaway.

Bitcoin Falls to $74,900 as the Warsh “Pivot Party” Gets Cold Water

As reported by crypto.news, the cryptocurrency market began factoring in expectations of potential interest rate cuts on April 29th, based on the idea that a change in Federal Reserve leadership would make those cuts more likely. However, Jerome Powell remaining on the board – and retaining his voting power – along with three Fed members advocating for maintaining current rates, quickly changed that outlook during a recent press conference. Bitcoin’s price dropped from $77,000 to $74,914, accompanied by $137.77 million leaving exchange-traded funds (ETFs) – ending a nine-day period of inflows. According to Matt Mena of 21Shares, these dissenting voices significantly cooled down the market’s optimism. As crypto.news observed, Bitcoin has now declined following eight out of the last nine Federal Open Market Committee (FOMC) meetings, continuing a trend analysts had anticipated.

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2026-04-30 21:19