Powell sets dangerous precedents and warns Pipriano that it could harm the code

Crypto Investor Anthony Pompliano recently criticised President Trump’s recent threat to Federal Reserve Chairman Jerome Powell, warning that such a move would undermine the Fed’s institutional independence and set a bad precedent, particularly in Bitcoin, inventory and the US economy.

“I don’t think that the US president should come and unilaterally fire the federal president,” he said. “The idea of ​​firing the Fed chair is a very bad precedent for setting it up like this.”

Poliano’s comments come after Trump called out Powell in his true social post that he won’t cut interest rates any time soon, as he said “Powell’s firing cannot come quickly enough.” He pointed out that the Fed already appears to be political to some, and warned that firing Powell could only make things worse.

Don’t sacrifice Fed independence for the benefit of crypto

Anthony said fighting fraud with more cheating is wrong, despite being a critic of the Fed itself. He emphasized that protecting the Fed’s independence is more important than short-term benefits. He acknowledged that rate cuts often boost crypto markets, particularly Bitcoin, but he emphasized that such profits should not be at the expense of damaging major financial institutions.

Senator Warren says the market could crash

Senator Elizabeth Warren also warned that firing the Fed’s chair could seriously damage investors’ trust and crash the market. In an interview with CNBC, she said that if the Fed is considered controlled by the president, it could harm the US economy and make America look like another “two-bit dictatorship” rather than a stable democracy.

“The idea is that most of our economy is strong, most of the world economy is strong, and that big pieces of the world move independently of politics,” Warren said when he appeared on CNBC.

Pulpliano agreed with the concerns, warning that such a move would set a dangerous precedent that future monetary policy decisions might be driven by politics rather than data. If investors start to believe that the Fed is no longer fair, the consequences can be severe, he says.

The climate is changing!

Earlier this week, Powell said it was time for clear rules on stable things, acknowledging that digital assets are currently firmly present on the Fed’s radar. In a speech at the Chicago Economic Club, he said “the climate is changing,” highlighting Crypto’s growing role in the financial system.

Trump and some Republicans have updated the pressure to eliminate Powell on his cautious stance on interest rate cuts. The Fed reduced its final reduction rate in December 2024. Powell insists on seeing clear indications that inflation will drop before moving, but Trump is concerned that other central banks like the ECB have already cut multiple times in 2025.

Bitcoin opportunity?

At the same time, experts believe that if the US dollar weakens due to uncertainty, it could actually help Bitcoin. They believe that weaker dollars can drive more people to invest in crypto to protect their money.