Anthony Pompliano: Firing Powell could set a dangerous precedent and threaten the future of crypto.

Investor Anthony Pompliano has sharply criticized President Donald Trump’s threat to fire Fed Chairman Jerome Powell. According to him, this action not only undermines the institutional independence of the Fed but also sets a dangerous precedent, especially for Bitcoin, stocks, and damages global confidence in the U.S. economy.

Investor Anthony Pompliano “The President of the United States should not intervene and unilaterally fire the Fed Chair. Such an action would set a very dangerous precedent.”

Pompliano emphasizes that, in the eyes of a segment of the public, the Fed is increasingly seen as political, and he warns that firing Powell at this time could only complicate the situation further.

Do not sacrifice the independence of the Fed for profit from cryptocurrency

Although known as a Fed critic, Anthony asserted that “you cannot take wrong to correct wrong.” He believes that reacting to the controversial decisions of the Fed with extreme actions like firing Chairman Powell will only worsen the situation.

He emphasized that protecting the independence of the Fed is a core principle, more important than any short-term benefits that the market may achieve. While acknowledging that interest rate cuts often have a positive impact on the crypto market, especially Bitcoin, he warned that such benefits should not come at the expense of harming an important financial institution.

U.S. Senator Warren warns of potential market collapse

US Senator Elizabeth Warren also warned that firing the Fed Chair could seriously damage investor confidence and collapse the market. In an interview with CNBC, she stated that if the Fed is controlled by the President, it could harm the US economy and make the country look like any “weak and mediocre dictatorship” rather than a stable democracy.

“One of the reasons our economy – and much of the world economy – remains strong is because large structures operate separate from political influence,” Warren shared in an interview.

Pompliano agreed with the concerns, warning that such a move would set a dangerous precedent where future monetary policy decisions could be influenced more by politics than by data. He stated that if investors begin to believe the Fed is no longer fair, the consequences could be very serious.

The context is changing!

Earlier this week, Powell stated that it is time for clear rules regarding stablecoins and acknowledged that digital assets are currently in the Fed’s sights. In a speech at the Economic Club of Chicago, he noted that “The landscape is changing,” emphasizing the growing role of crypto in the financial system.

Trump and some Republican members are continuing to pressure to remove Powell due to his cautious stance on interest rate cuts. The last time the Fed cut interest rates was in December 2024. While Powell insists on seeing clear signs of inflation reduction before making any moves, Trump is concerned as other central banks like the ECB have cut interest rates several times in 2025.

Opportunity for Bitcoin?

At the same time, experts believe that if the US dollar weakens due to instability, this could actually benefit Bitcoin. They believe a weaker dollar will encourage more people to invest in crypto to protect their money.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct their own research before making any decisions. We are not responsible for your investment decisions.

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