XRP Set to Surge? Powell Resignation Rumors and Trump’s Rate Cut Plans Shake Markets

On June 1, 2025, social media platforms buzzed with unverified claims that Federal Reserve Chair Jerome Powell would resign imminently, potentially paving the way for immediate interest rate cuts by the Trump administration. However, these rumors lack substantiation. Powell has consistently stated his intention to serve his full term, ending in May 2026, and recent court rulings have reinforced the Fed's independence, limiting the president's ability to remove the chair over policy disagreements.

Despite the baseless nature of these rumors, they have stirred market speculation, particularly within the cryptocurrency sector. Analysts warn that any abrupt change in Fed leadership could undermine confidence in the U.S. dollar and broader economic stability.

Trump's Push for Lower Interest Rates

President Donald Trump has been vocal in his criticism of the Federal Reserve's current interest rate policy, advocating for cuts to stimulate economic growth. He argues that with inflation rates declining, the Fed should lower rates to maintain competitiveness with other economies like China and the EU. However, the Fed has maintained its stance on keeping rates steady, emphasizing decisions based on economic data rather than political pressure.

Trump's economic policies, including proposed tax cuts and tariffs, have raised concerns among financial institutions. Bank of America warns that such measures could inflate a new market bubble, particularly affecting sectors like technology and cryptocurrency.

XRP's Position Amid Economic Speculation

In this climate of uncertainty, XRP has experienced increased attention. As of June 2, 2025, XRP is trading at $2.15 USD, reflecting a slight uptick of 0.00467% from the previous close. The cryptocurrency's value has fluctuated between an intraday high of $2.18 and a low of $2.14.

XRP's appeal lies in its utility for cross-border payments and its inclusion in the U.S. Crypto Strategic Reserve, alongside other major cryptocurrencies like Bitcoin and Ethereum. Speculation about potential interest rate cuts and shifts in monetary policy could further influence XRP's market performance, as investors seek assets that may benefit from increased liquidity and a weaker dollar.

Conclusion

While the rumors of Jerome Powell's resignation remain unsubstantiated, they highlight the market's sensitivity to potential changes in monetary policy. President Trump's advocacy for lower interest rates adds another layer of complexity, with potential implications for various financial sectors, including cryptocurrencies like XRP. Investors should remain vigilant, focusing on verified information and considering the broader economic context when making decisions.

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