Crypto investor Anthony Pompliano has warned that US President Donald Trump’s firing of Federal Reserve Chair Jerome Powell could set a troubling example. He shared these comments in a video posted on April 18 on his X platform, “From The Desk of Anthony Pompliano.”

Pompliano responded to Trump’s recent statement on Truth Social, where he said, “Powell’s termination cannot come fast enough!” Trump has criticized Powell for not cutting interest rates quickly enough.

Firing the Fed Chair Over Disagreements Could Harm Market Stability

Pompliano stated that firing Powell due to policy disagreements is a line that should not be crossed. He emphasized the importance of preserving the Federal Reserve’s independence.

“Where you have a disagreement and then the firing, I think that’s not the area that we want to go into,” he said.

The independence of the Fed is a core principle that supports economic trust. Removing Powell for political reasons could damage this foundation.

US Senator Elizabeth Warren also issued a warning. She said that removing Powell could reduce investor confidence in the US financial system. During an interview with CNBC, she noted, “A big part of our economy, and a big part of the world economy, is the idea that the big pieces move independently of politics.”

Trump’s Criticism of Powell and Interest Rates

Trump has criticized Powell for maintaining interest rates at a level higher than what he deems appropriate. The economy receives increased liquidity when interest rates decrease. The monetary policies usually enhance the value of stock investments alongside digital crypto assets.

In his post, Trump suggested Powell was too slow in adjusting monetary policy. Trump also accused Powell of contributing to economic strain. Markets often respond to interest rate decisions. Any uncertainty about the Fed’s leadership may trigger investor anxiety. The crypto market, in particular, is highly sensitive to the liquidity chain

Fed Independence and Crypto Market Implications

Pompliano acknowledged that the Fed is not entirely free from political influence. “The Fed, I think, is highly politicized, even though they pretend not to be,” he said. However, he stressed that removing the chair is not a solution.

He added that while he often disagrees with the Fed’s decisions, respecting institutional boundaries is key. “Just because somebody else is doing something wrong doesn’t mean that you should do something wrong,” he said.

Recent interest in stablecoin regulation has also made headlines. On April 16, Powell said during a panel at the Economic Club of Chicago that creating a legal framework for stablecoins is a “good idea.”

Crypto assets, especially Bitcoin, often react to shifts in Fed policy. Lower rates tend to drive higher crypto prices. Analysts track statements by Powell and other officials for signals about future policy.