Crypto entrepreneur Anthony Pompliano has kicked against the move by President Donald Trump to fire the head of the Federal Reserve Jerome Powell. According to Pompliano, if Trump decides to follow through on the move, he will set a dangerous precedent, especially considering the motive behind the move.
Pompliano agrees with the critics that the Federal Reserve is not truly independent but notes that firing the Chairman will only just make things worse. “I do not believe that the President of the United States should come in and unilaterally fire the Fed President,” Pompliano said in a video posted on X.
Why is the price of bitcoin flat? Should Trump fire Jerome Powell? Will The US lose reserve currency status?
— Anthony Pompliano 🌪 (@APompliano) April 18, 2025
I answer your questions 👇 pic.twitter.com/S7Q6hANR3H
The warning came after the US President took to his social media platform Truth Social to accuse Jerome Powell of wasting time before cutting interest rates. “Powell’s termination cannot come fast enough!” Trump said in the post. In reaction, Pompliano mentioned that where there is a disagreement and a firing ensues, it is not an area that the United States is supposed to go to. “The idea of firing the Fed chairman is a very bad precedent to set this way,” he said.
Pompliano warns against bad precedent if Powell is axed
Pompliano said, “The Fed, I think, is highly politicized, even though they pretend not to be.” He also acknowledged the criticism that he has thrown their way, noting that he is not a fan. But he emphasized that even if the Fed has made mistakes, responding in this sort of manner is not the right approach.
Lower interest rates have often led to increased liquidity, which has historically seen prices of risky assets like Bitcoin and other digital assets shoot up. The recent statement coming after Powell said stabilizing a stablecoins legal framework is a good idea. “The climate is changing, and you’re moving into more mainstreaming of that whole sector, so Congress is again looking […] at a legal framework for stablecoins.”
Senator Elizabeth Warren has also jumped to the defense of Powell, noting that if Trump fires him, it could undermine investor confidence in the integrity of capital markets. She also added that a move like this could trigger a big financial crash. During an appearance on CNBC, Senator Warren mentioned that the president lacked the legal authority to fire Powell, noting that if such a move happened, it could weaken the financial infrastructure of the United States.
“If Chairman Powell can be fired by the President of the United States, it will crash the markets. The infrastructure that keeps this stock market strong and, therefore, a big part of our economy strong, and a big part of the world economy strong, is the idea that the big pieces move independently of politics,” she said. “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.”
Trump criticizes Powell
Trump had long criticized Powell, calling for his termination repeatedly because of his hesitation toward lowering interest rates. In his latest criticism, it looked as if Trump was ready to follow through on his threats and find a way to remove the chairman. Senator Rick Scott backed Trump’s call to remove Powell, noting that “It’s time to clean house of everyone working at the Federal Reserve who isn’t on board with helping the American people and fighting for their best interests.”
The Trump administration has repeatedly mentioned that lowering interest rates is a top priority. In a previous post, Pompliano mentioned that Trump deliberately crashed the financial markets to force Powell to lower interest rates. “The President and his team are intentionally crashing the market. Is this a master plan or are we watching uncontrolled destruction?!,” he said on X.
Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now
