President Donald Trump's threat to terminate Federal Reserve Chairman Jerome Powell

The confrontation began after Powell criticized the economic impact of Trump's tariff policies, warning they would lead to “higher inflation and slower growth.”

President Donald Trump's threat to terminate Federal Reserve Chairman Jerome Powell has sent ripples through global markets, notably boosting Bitcoin and weakening the US dollar.

The spat began after Powell criticized the economic impact of Trump's tariff policies, which he claimed would spur "higher inflation and slower growth."

Bitcoin has surged over 16% since April 9 to trade above $87,600 early Monday. This rally follows a week of net inflows into spot Bitcoin ETFs in the United States as the funds saw outflows for two consecutive weeks, with nearly $886 million leaving the funds.

The spat began after Powell criticized the economic impact of Trump's tariff policies, which he claimed would spur "higher inflation and slower growth."

This comment was made during a speech at the Economic Club of Chicago on Wednesday, where he also mentioned that "the level of tariff increases announced so far is larger than anticipated."

However, Trump responded negatively on Thursday via social media, stating that "‘Too Late’ Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete ‘mess!'”

He continued, "The Fed purposely keeps interest rates at an all-time low, and yet isn’t stimulating economic growth. They are killing the dollar with low rates and, worse yet, they've had a preferred stock market which isn't working! Tariffs are being imposed without any effect, except on the factor of jobs, which is a plus. Jerome’s threat to terminate Federal Reserve Chairman Jerome Powell has sent ripples through global markets, notably boosting Bitcoin and weakening the US dollar.

The spat began after Powell criticized the economic impact of Trump's tariff policies, which he claimed would spur "higher inflation and slower growth."

This comment was made during a speech at the Economic Club of Chicago on Wednesday, where he also mentioned that "the level of tariff increases announced so far is larger than anticipated."

However, Trump responded negatively on Thursday via social media, stating that "‘Too Late’ Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete ‘mess!'”

He continued, "The Fed purposely keeps interest rates at an all-time low, and yet isn't stimulating economic growth. They are killing the dollar with low rates and, worse yet, they've had a preferred stock market which isn't working! Tariffs are being imposed without any effect, except on the factor of jobs, which is a plus.