Firing Fed Chair Would Be a Dangerous Mistake, Says Pompliano Amid Trump’s Threats
Crypto Influencer Warns of Financial Instability If Political Pressure Overrides Federal Reserve Independence
As tension brews between former U.S. President Donald Trump and the Federal Reserve, prominent crypto investor Anthony Pompliano is raising the alarm. In a passionate commentary released April 18, Pompliano warned that firing Federal Reserve Chair Jerome Powell would be a “very bad precedent” that could destabilize the financial system and further politicize a supposedly independent institution.
“I do not believe that the President of the United States should come in and unilaterally fire the Fed President,” Pompliano said in his video, shared via X (formerly Twitter).
Trump Targets Powell Over Interest Rates
The uproar follows Trump’s heated post on Truth Social on April 17, where he accused Powell of dragging his feet on interest rate cuts, stating, “Powell’s termination cannot come fast enough!”
Trump’s frustrations stem from the Fed’s cautious approach to adjusting interest rates — a critical factor that influences everything from loan affordability to asset market behavior, including crypto prices.
Pompliano: Fed Is Flawed, But Firing Powell Isn’t the Fix
While Pompliano acknowledged the Fed isn’t truly independent, he urged caution, noting that setting a precedent where political leaders fire central bank heads over disagreements could lead the U.S. down a slippery slope.
“The Fed, I think, is highly politicized, even though they pretend not to be,” Pompliano remarked.
“But just because someone else is doing something wrong doesn’t mean that you should do something wrong.”
He made these statements on his popular show, “From The Desk of Anthony Pompliano.”
Senator Warren Issues Stern Warning
U.S. Senator Elizabeth Warren echoed the concern during a recent CNBC appearance, saying Trump’s comments, if acted upon, would shake global investor confidence and potentially trigger a financial crash.
“A big part of what keeps our economy strong is the belief that core institutions operate independently from politics,” Warren said.
Rate Cuts and Crypto: What’s at Stake?
Behind this debate lies a deeper tension. Lower interest rates often bring more liquidity into markets, benefiting risk assets like Bitcoin and other cryptocurrencies. For crypto investors, the direction of Fed policy remains a key factor in future price movements.
Meanwhile, Powell himself hasn’t been entirely silent on crypto-related issues. Just days before Trump’s outburst, Powell participated in a panel where he supported creating a legal framework for stablecoins, calling it “a good idea” amid increasing interest from lawmakers.
Share This“The climate is changing… We’re moving toward the mainstreaming of that sector,” Powell said at the Economic Club of Chicago on April 16.
