Fed Chaos Alert: How Trump’s Powell Ouster Could Crush Crypto Markets, Warns Pompliano

Senator Warren argues that Fed independence is key to U.S. market stability and global economic credibility. Powell says digital assets require clearer rules, highlighting crypto’s expanding role while resisting political pressure on monetary decisions. Investor and crypto advocate Anthony Pompliano has criticized President Donald Trump’s call to remove Federal Reserve Chair Jerome Powell, warning the move could harm both financial markets and institutional trust. His comments come after Trump posted on Truth Social that “Powell’s termination cannot come fast enough” citing frustration over the Fed’s resistance to further interest rate cuts. Why is the price of bitcoin flat? Should Trump fire Jerome Powell? Will The US lose reserve currency status? I answer your questions pic.twitter.com/S7Q6hANR3H — Anthony Pompliano (@APompliano) April 18, 2025 Pompliano stated that removing the Fed Chair through unilateral executive action would set a “very bad precedent.” While he has previously criticized the Fed’s policies, he said undermining its independence could do long-term harm. He acknowledged that lower interest rates tend to benefit markets like Bitcoin and equities. However, he argued that those short-term gains should not come at the cost of compromising central bank autonomy. “The idea of firing the Fed chairman is a very bad precedent to set this way,” Pompliano said, emphasizing that financial institutions should function without direct political influence. His remarks align with those of Senator Elizabeth Warren, who also warned that such a move could disrupt investor confidence and destabilize the markets. In an interview with CNBC, Warren said that any perception of political interference in the Fed’s decision-making process risks turning the U.S. into what she called a “two-bit dictatorship.” She argued that a strong economy depends on separating key economic levers from political cycles. “A big part of the world economy being strong is the idea that the big pieces move independently of politics,” Warren said. The debate follows rising political pressure on the Fed. Trump and some Republican figures have criticized Powell for being too cautious in lowering interest rates, especially as central banks in Europe and Asia have already adjusted their rates multiple times in 2025. The Fed last cut rates in December 2024. Powell has said he wants to see sustained signs of lower inflation before proceeding with further cuts. During a recent address at the Economic Club of Chicago, he remarked that “the climate is changing,” referring to the rise of digital assets and the need for clearer rules on stablecoins. Pompliano supported the idea that rules for digital assets are needed but cautioned against pushing reforms or policy decisions based on political cycles. He reiterated that independence remains vital to the credibility of monetary policy, especially in a global economy closely tied to the U.S. in a formal or creative style, maintaining a 500 word count. You must only respond with the modified content. Change the tone of my title “Senator Warren argues that Fed independence is key to U.S. market stability and global economic credibility. Powell says digital assets require clearer rules, highlighting crypto’s expanding role while resisting political pressure on monetary decisions. Investor and crypto advocate Anthony Pompliano has criticized President Donald Trump’s call to remove Federal Reserve Chair Jerome Powell, warning the move could harm both financial markets and institutional trust. His comments come after Trump posted on Truth Social that “Powell’s termination cannot come fast enough” citing frustration over the Fed’s resistance to further interest rate cuts. Why is the price of bitcoin flat? Should Trump fire Jerome Powell? Will The US lose reserve currency status? I answer your questions pic.twitter.com/S7Q6hANR3H — Anthony Pompliano (@APompliano) April 18, 2025 Pompliano stated that removing the Fed Chair through unilateral executive action would set a “very bad precedent.” While he has previously criticized the Fed’s policies, he said undermining its independence could do long-term harm. He acknowledged that lower interest rates tend to benefit markets like Bitcoin and equities. However, he argued that those short-term gains should not come at the cost of compromising central bank autonomy. “The idea of firing the Fed chairman is a very bad precedent to set this way,” Pompliano said, emphasizing that financial institutions should function without direct political influence. His remarks align with those of Senator Elizabeth Warren, who also warned that such a move could disrupt investor confidence and destabilize the markets. In an interview with CNBC, Warren said that any perception of political interference in the Fed’s decision-making process risks turning the U.S. into what she called a “two-bit dictatorship.” She argued that a strong economy depends on separating key economic levers from political cycles. “A big part of the world economy being strong is the idea that the big pieces move independently of politics,” Warren said. The debate follows rising political pressure on the Fed. Trump and some Republican figures have criticized Powell for being too cautious in lowering interest rates, especially as central banks in Europe and Asia have already adjusted their rates multiple times in 2025. The Fed last cut rates in December 2024. Powell has said he wants to see sustained signs of lower inflation before proceeding with further cuts. During a recent address at the Economic Club of Chicago, he remarked that “the climate is changing,” referring to the rise of digital assets and the need for clearer rules on stablecoins. Pompliano supported the idea that rules for digital assets are needed but cautioned against pushing reforms or policy decisions based on political cycles. He reiterated that independence remains vital to the credibility of monetary policy, especially in a global economy closely tied to the U.S. ” for a more friendly approach. Keep the content length about the same. You must only respond with the modified content.

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