Crypto investor Anthony Pompliano has raised concerns about President Trump’s threat to fire Federal Reserve Chair Jerome Powell. Pompliano believes that such a move would undermine the independence of the Fed and set a dangerous precedent, especially for Bitcoin and stocks. He argues that firing the Fed chairman is a bad idea and could harm global confidence in the US economy.
Trump’s criticism of Powell stems from his belief that interest rates should be cut more quickly. However, Pompliano argues that fighting wrongdoing with more wrongdoing is not the solution. He emphasizes the importance of protecting the Fed’s independence and warns against sacrificing it for short-term gains in the crypto market.
Senator Elizabeth Warren also shares these concerns. She warns that firing the Fed Chair could damage investor confidence and crash the markets. She believes that if the Fed is seen as controlled by the President, it would undermine the perception of the US as a stable democracy.
Pompliano agrees with Warren’s concerns and warns that such a move could set a dangerous precedent, where future monetary policy decisions are driven by politics rather than data. He emphasizes the importance of maintaining the Fed’s impartiality to prevent serious consequences.
Powell recently acknowledged the growing role of digital assets, including stablecoins, in the financial system. This recognition comes as Trump and some Republicans pressure Powell to cut rates. While Powell insists on clear signs of falling inflation before making any moves, Trump is concerned about other central banks cutting rates multiple times in 2025.
Experts believe that if the US dollar weakens due to uncertainties, it could actually benefit Bitcoin. A weaker dollar may drive more people to invest in crypto as a way to protect their money.
In summary, Pompliano and Warren warn that firing Powell would undermine the independence of the Fed and harm investor confidence. They argue that monetary policy decisions should be based on data, not politics. However, the possibility of firing Powell remains a topic of discussion, especially in relation to the impact on Bitcoin and global markets.
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