Crypto investor Anthony Pompliano warns that firing Fed Chair Jerome Powell would undermine the Fed's institutional independence

input: Crypto investor Anthony Pompliano recently criticized President Trump's recent threat to fire Fed Chair Jerome Powell, and warned that such a move would undermine the institutional independence of the Fed and set a bad precedent

Crypto influencer Anthony Pompliano has weighed in on the recent threat by President Trump to fire Fed Chair Jerome Powell, arguing that such a move would be a setback for the institutional independence of the Fed and set a bad precedent for Bitcoin, stocks and global confidence in the US economy.

Pompliano’s comments come after Trump called out Powell on his truth Social post for not cutting the interest rates soon, adding that “Powell’s termination cannot come fast enough!”

Pompliano said that it’s important to protect the Fed’s independence, even if it’s sometimes viewed negatively. He noted that some people see the Fed as already too political, and firing the chairman would only worsen that perception.

“I do not believe that the President of the United States should come in and unilaterally fire the Fed President. I think the idea of firing the Fed chairman is a very bad precedent to set this way.”

Senator Elizabeth Warren also warned that firing the Fed Chair could seriously hurt investor confidence and crash the markets. In an interview with CNBC, she said that if the Fed is seen as controlled by the President, then it could harm the US economy and make America look like any other “two-bit dictatorship” instead of a stable democracy.

“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,” said Warren, according to a CNBC report.

Pompliano agreed with the concerns, adding that such a move sets a dangerous precedent where future monetary policy decisions might be driven by politics rather than data. If investors begin to believe that the Fed is no longer impartial, the consequences could be serious.

Earlier this week, Powell said that it’s time for clear rules on stablecoins and acknowledged that digital assets are now firmly on the Fed’s radar. In a speech at the Economic Club of Chicago, Powell said, “The climate is changing,” highlighting crypto’s growing role in the financial system.

Trump and some Republicans have renewed pressure to remove Powell over his cautious stance on rate cuts. The Fed last cut rates in December 2024. While Powell insists on seeing clear signs of falling inflation before making any moves, Trump is concerned that other central banks like the ECB have already cut rates multiple times in 2025.

At the same time, experts believe that if the US dollar weakens due to the uncertainties, it could actually help Bitcoin. According to them, a weaker dollar might drive more people to invest in crypto to protect their money.

Pompliano warned that this would undermine the Fed’s independence and hurt investor confidence, particularly in Bitcoin and global markets.

Trump criticized Powell for not cutting rates quickly enough, and is frustrated that other central banks have already made cuts.