Anthony Pompliano, a well-known crypto investor and entrepreneur, has expressed serious concerns regarding former President Donald Trump’s recent suggestion to fire Federal Reserve Chair Jerome Powell. In his view, such an action could jeopardize the Federal Reserve’s institutional independence and create a troubling precedent for U.S. monetary policy.
In a video shared on X on April 18, Pompliano cautioned against allowing political influences to dictate the actions of the U.S. central bank.
“I do not believe that the President of the United States should come in and unilaterally fire the Fed President,” Pompliano stated. “The idea of firing the Fed chairman is a very bad precedent to set this way.”
Pompliano Responds to Trump’s Criticism of Fed Chair Over Rate Cuts
Pompliano’s remarks followed a post from Trump on his Truth Social platform on April 17. In that post, the former president criticized Powell for his perceived slow response to interest rate cuts.
“Powell’s termination cannot come fast enough!” Trump declared, raising alarms about potential political meddling in monetary policy.
While acknowledging the prevalent perception that the Fed operates under political influences, Pompliano argued that resorting to retaliatory executive actions is not a viable solution.
“Even if someone is doing something wrong, it doesn’t justify doing something wrong in return,” he remarked.
Despite his own criticisms of the Fed, Pompliano underscored the necessity of maintaining the institution’s operational independence.
Traditionally, lower interest rates are seen as advantageous for risk-sensitive assets like Bitcoin, which often thrive in more accommodating monetary conditions. However, Pompliano asserted that market gains should not compromise the integrity of the institutional framework.
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’s concerns are echoed by others as well. Senator Elizabeth Warren warned that ousting Powell could severely undermine investor confidence and potentially lead to broader market instability.
In an interview with Finance Newso, Warren remarked, “If Chairman Powell can be fired by the President of the United States, it will crash the markets.”
She emphasized that the strength of the U.S. economy relies heavily on the perception of independence among critical institutions like the Fed.
“If interest rates in the United States are subject to a president who just wants to wave his magic wand, this doesn’t distinguish us from any other two-bit dictatorship,” Warren pointed out.
Trump Renews Pressure on Fed Chair Powell
Trump has a history of pressuring Powell regarding interest rate policies, and these calls for Powell’s removal have resurfaced recently.
Florida Senator Rick Scott mirrored these sentiments, arguing in a Finance Newso News op-ed that the Federal Reserve needs new leadership committed to “fighting for the American people.”
The Fed’s last interest rate cut occurred in December 2024, with Powell consistently stating that he seeks substantial evidence of decreased inflation before making any further adjustments.
In contrast, the European Central Bank has already implemented three rate cuts in 2025, which adds to Trump’s frustration.
Amid the ongoing debate, some analysts argue that a weaker dollar could actually present an opportunity for Bitcoin in the medium to long term. Real Vision founder Raoul Pal has suggested that a diminished greenback might compel investors to seek alternative wealth preservation strategies, such as Bitcoin.
The post Pompliano Warns Trump Firing Fed Chair Would Set Dangerous Precedent appeared first on Finance Newso.
