Anthony Pompliano, a prominent figure in the crypto realm, has expressed concern over US President Donald Trump’s recent threat to dismiss Jerome Powell, the current head of the US Federal Reserve. Pompliano believes such an action could establish a troubling precedent, particularly given its underlying motive.
“The US President should not have the power to single-handedly dismiss the Federal Reserve’s President,” Pompliano stated in a video released on April 18. He added, “Dismissing someone due to a disagreement is a dangerous path to tread.”
This warning follows Trump’s recent criticism of Powell on his social media platform, Truth Social, where he accused the Fed chair of being tardy in implementing interest rate cuts. Trump expressed his impatience with Powell on April 17, stating, “Powell’s termination cannot come fast enough!”
While acknowledging that the Federal Reserve does not operate with complete independence as it claims, Pompliano concurred with critics who believe it is heavily politicized. However, he emphasized that regardless of any mistakes the Fed may have made, responding with similar errors is not the solution. “Just because someone else is doing something wrong doesn’t mean you should too,” Pompliano asserted.
US Senator Elizabeth Warren has also expressed concern over Trump’s potential dismissal of Powell. She suggests that such an action may erode investor trust in the integrity of US capital markets and could potentially trigger a financial crash. She stated, “The strength of our economy, and indeed the global economy, relies on the notion that major economic elements operate independently of political influence.”
Notably, decreased interest rates generally result in increased liquidity, which historically has led to a surge in prices of riskier assets like Bitcoin and other cryptocurrencies. This assertion comes shortly after Powell expressed the need for a stablecoins legal framework, calling it a “good idea” during an April 16 panel at the Economic Club of Chicago.
