trumpeconomy

In a move that has sent shockwaves from Wall Street to the crypto markets, President Donald Trump has officially labeled his 2017 appointment of Jerome Powell as a “big mistake.” During a recent interview with Fox Business, Trump didn't just express political regret; he laid out a radical new vision for the U.S. economy. He revealed that he should have chosen Kevin Warsh from the start, claiming that under Warsh’s leadership, the U.S. economy could hit an explosive 15% growth rate.
While many economists call that number "rosy," the market isn't laughing—it’s pricing in a total regime shift.
The Philosophy of Acceleration: Powell vs. Warsh
To understand why this matters for your bags, you have to look past the quote. This is a battle between two fundamentally different economic engines:
* Jerome Powell (The Brake): Powell’s tenure has been defined by "cautious independence." His priority is inflation control, often at the expense of liquidity. By keeping rates "higher for longer," he’s acted as the cooling system for an overheating engine.
* Kevin Warsh (The Gas): Trump views Warsh as the "growth-first" architect. Warsh’s philosophy suggests that in an era of massive productivity gains (hello, AI), we don't need to fear low rates. Trump believes Warsh would unlock capital, slash borrowing costs, and allow the economy to run at full throttle.
Why "15% Growth" is a Narrative Shift
In reality, the U.S. hasn't seen sustained 15% growth in modern history. But in the world of finance, narrative is reality. When a President—and a potential future one—openly backs a Fed candidate who prioritizes liquidity over restraint, it signals the end of the "tight money" era.
* For Equities: Lower cost of capital means higher valuations.

* For Crypto: Bitcoin and altcoins thrive in high-liquidity environments. If the Fed stops being the "policeman" of the economy and starts being its "promoter," risk-on assets are the first to fly.
* For the Dollar: Trump’s "Dollar Doctrine" favors a weaker, more competitive currency to boost exports—a move Warsh's potential policies could support.
The "Warsh Shock" is Already Here
Markets don't wait for a change in the Fed Chair's seat (scheduled for May 2026). They are already "front-running" the possibility of a Fed that is more sensitive to White House growth targets. Gold has already surged past the historic $5,000 mark, and bond yields are repricing as investors brace for a "Growth-at-all-costs" era.
The Bottom Line
Trump’s admission proves that personnel is policy. You can have the best business plan in the world, but if the person controlling the "money faucet" decides to turn it off, growth dies. By championing Warsh, Trump is signaling a future where the faucet stays wide open.
News Type: Macro Economic Analysis / Breaking News
Hashtags: #FedPivot #TrumpEconomy #KevinWarsh #MacroNews
> What do you think? Is 15% growth a delusional dream, or is the U.S. economy actually capable of a massive breakout if the Fed gets out of the way? Drop your price predictions for BTC and Gold in the comments!
>
Would you like me to analyze how a Kevin Warsh-led Fed might specifically impact the crypto market
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Hi friends
August 5, 2025 | Washington, D.C.
In a significant turn of events, former President Donald $TRUMP has officially removed Treasury Secretary Scott Bessent from consideration to replace Jerome Powell as Federal Reserve Chair. The reason? Bessent himself reportedly declined the offer, choosing instead to remain in his current role at the Treasury.
> “I love Scott, but he wants to stay where he is,” Trump told CNBC. “I’ll take him off, because I asked him just last night, ‘Is this something you want?’ [He said] ‘Nope, I want to stay where I am.’”
Trump’s updated shortlist now features former Federal Reserve Governor Kevin Warsh, White House economist Kevin Hassett, and two yet-to-be-named candidates. This shake-up comes as Trump continues to lambast current Fed Chair Jerome Powell, criticizing him for dragging his feet on implementing interest rate cuts. The former president has gone so far as to call Powell “a numbskull” and “a complete moron,” placing the blame for recent economic instability squarely on the central bank's leadership.
A Divided Fed in Uncertain Times
The Federal Reserve recently held rates steady amid global trade uncertainty and fragile economic indicators. But not without dissent: Fed Governor Christopher Waller and Vice Chair Michelle Bowman both pushed for a quarter-point cut, exposing deep internal division.
Further complicating matters, Fed Governor Adriana Kugler resigned just last week, leaving another vacancy on the board. Trump confirmed he will appoint a temporary replacement within days—an unusual four-month term, which many see as a possible audition for the permanent chair role once Powell’s term ends in 2026.
Bessent’s Influence Isn’t Over
Though Bessent has stepped away from the Fed chair spotlight, he remains a major player in Trump’s economic circle. He’s now leading high-level trade negotiations, including recent U.S.-China talks held in Sweden, with a critical August 12 deadline looming for tariff decisions. His presence at the negotiating table underlines his continuing influence in shaping economic policy—especially as it intersects with the 2025 campaign cycle.
Kevin Hassett, another name floated for Fed leadership, confirmed Bessent is still heavily involved in vetting potential candidates, suggesting that even from behind the curtain, Bessent's voice will shape who leads the Fed next.

Key Takeaways:
Scott Bessent is out of the running for Fed Chair.
Kevin Warsh and Kevin Hassett are top contenders.
$TRUMP will appoint a four-month interim Fed Governor—possibly as a test run.
Internal Fed tensions emerge over stalled rate cuts.
U.S.-China trade negotiations remain tense ahead of August 12 deadline.
The economic and political stakes are growing—and the markets are watching closely.
#FedWatch #CryptoNews #TrumpEconomy #Bessent #JeromePowell
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