Trump’s Threat to Fire Fed Chair Raises Alarms Over Market Stability and Crypto Impact

Anthony Pompliano has voiced strong opposition to Donald Trump’s recent push to remove Federal Reserve Chair Jerome Powell, warning that such a move could damage the credibility of the U.S. financial system.

The crypto investor argued that interfering with the central bank’s leadership could rattle markets, especially Bitcoin, and undermine global trust in the U.S. economy.

Responding to Trump’s online comments—where the former president criticized Powell for not lowering interest rates and suggested his removal couldn’t happen soon enough—Pompliano stressed that political retaliation against the Fed would only deepen perceptions that the institution is no longer impartial.

Although Pompliano has previously criticized the Fed’s approach, he emphasized the need to uphold its independence. He acknowledged that lower interest rates often benefit the crypto market, but said that sacrificing institutional integrity for short-term gains is a dangerous tradeoff.

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Senator Elizabeth Warren echoed these concerns during a CNBC interview, warning that a politically motivated dismissal of the Fed chair could shake investor confidence and send markets into a tailspin. She cautioned that allowing the White House to dictate central bank policy would tarnish the image of the U.S. as a stable democracy.

Both Pompliano and Warren agree that if the Fed is seen as a political tool, rather than a data-driven entity, the long-term consequences could be severe—not just for Wall Street or crypto investors, but for the entire global economy.

Meanwhile, Chair Powell himself addressed the growing relevance of digital assets in a recent speech, stating that the Federal Reserve is now paying closer attention to stablecoins and broader developments in the crypto sector. While central banks in Europe have already made several rate cuts in 2025, Powell continues to hold a cautious stance, waiting for inflation to show clear signs of decline before acting.

Alexander Stefanov