Donald Trump

when

Reserve

Following the US Department of Justice’s (DOJ) initiation of an investigation into Federal Reserve Chairman Jerome Powell, market dynamics shifted against Donald Trump’s expectations.
According to market forecasts, Powell’s chances of remaining at the Fed after his term ends in May, potentially serving until 2028, are increasing. Meanwhile, Kevin Warsh, seen as a more hawkish candidate for the Fed chairmanship, is beginning to overtake Kevin Hassett, known for his closeness to Trump. These developments point to a power struggle between Trump and the Fed that could continue throughout the year.
According to data from the forecasting platform Polymarket, the likelihood of Powell leaving his post has sharply declined following his video response to an inquiry on January 11. At the beginning of the month, the probability of Powell leaving the Fed before May 30 was priced at 74 percent, but this has fallen to 45 percent. The probability of him leaving by the end of the year has also decreased from 85 percent to 62 percent.
Related News: <a href="https://en.bitcoinsistemi.com/note-binance-releases-important-update-there-are-changes-to-transaction-fees/" rel="noopener noreferrer nofollow">Note: Binance Releases Important Update - There are Changes to Transaction Fees</a>
Markets have also revised their expectations regarding Powell’s potential successor. Following news of the Justice Department’s investigation, Warsh’s support for the Fed chairmanship at Polymarket began to surpass Hassett’s. Warsh is emerging as a “hawkish” candidate who could adopt a tougher stance on monetary policy.
Policy analyst Dan Clifton stated that there has been an informal understanding between Trump and Powell since last summer. According to this understanding, if Powell agreed to step down when his term ends in May, Trump would not escalate his criticism of the multi-billion dollar renovation project at the Fed headquarters. Trump had previously harshly criticized this project, but had softened his criticism of the Fed somewhat in the second half of last year.
According to Clifton, crossing this “red line” last Sunday strengthened the possibility of Powell remaining as an ordinary board member at the Fed. The analyst stated that continuing the personal attacks against Powell is likely to be fruitless in the long run.
*This is not investment advice.
 Continue Reading: <a href="https://en.bitcoinsistemi.com/president-donald-trump-s-fed-plan-may-have-backfired-experts-reveal-what-will-happen-next/" rel="noopener noreferrer nofollow">President Donald Trump’s FED Plan May Have Backfired – Experts Reveal What Will Happen Next</a>

President Donald Trump’s FED Plan May Have Backfired – Experts Reveal What Will Happen Next

Bitcoin Sistemi EN

Other articles published on Jan 16, 2026

New Bill Would Open Door for Bitcoin Exposure in West Virginia Reserves

Ethereum Holds $3,280 Level As Momentum Indicators Flash Warning Signs

Regret Missing Solana and Polkadot? APEMARS Is One of the Top Altcoin Picks Investors Can’t Affor...

X Revokes InfoFi API Access, Triggering Sharp Sell-Off in KAITO and Social Crypto Models

Moon or Miss: Turn $1,250 Into $280K With APEMARS Stage 3, While DOGE Surges 5.8% and FARTCOIN Up...

Bitcoin, Ethereum Price Action: Crypto Market Recap and Biggest Moves in the Last 24 Hours

Join our free newsletter for daily crypto updates!