Prominent entrepreneur in the cryptocurrency space, Anthony Pompliano, recently spoke out, expressing strong concern over President Trump's threat to fire Federal Reserve Chairman Jerome Powell. He pointed out that such actions are likely to set an extremely unfavorable precedent and pose a potential threat to the stability of the U.S. and even global financial markets.
In a video released on April 18 through the X platform, Pompliano clearly stated, 'I firmly believe that the President of the United States should not unilaterally make the decision to fire the Federal Reserve chairman.' He further explained that if the firing action is taken merely due to differences between the parties, it would undoubtedly lead the country into a very dangerous situation.
'The proposal to fire the Federal Reserve chairman is undoubtedly setting an extremely bad example for the future,' Pompliano emphasized. Previously, Trump had publicly accused Powell on the social media platform Truth Social of being slow to act on interest rate cuts, even stating, 'The sooner Powell is fired, the better.'
In the online program 'From The Desk of Anthony Pompliano', Pompliano delves into the issue of the Federal Reserve's independence. He admits that while he does not agree with the view of complete independence for the Federal Reserve, he believes that firing its chairman would only exacerbate the situation. 'The Federal Reserve does indeed have a strong tendency to be politicized, even though they try to cover it up,' he said.
Pompliano candidly stated that he has also criticized the Federal Reserve in the past and is not its supporter. However, he firmly believes that even if the Federal Reserve makes mistakes, we should not respond in the wrong way. 'We cannot make mistakes just because others have made mistakes,' he emphasized.
U.S. Senator Elizabeth Warren recently issued a warning, stating that if Trump truly takes action to fire Powell, it would severely undermine investors' confidence in the U.S. capital markets and could even trigger a financial crisis. 'The stability of the U.S. economy and even the global economy largely depends on these key institutions being able to operate independently of political factors,' Warren said on CNBC.
Additionally, it is worth noting that a lower interest rate environment often increases market liquidity, thereby driving up the prices of risk assets like Bitcoin. Not long ago, Powell also publicly stated that establishing a legal framework for stablecoins is a suggestion worth considering. At a discussion at the Chicago Economic Club on April 16, he further pointed out, 'As the industry continues to develop, the legal framework issue for stablecoins has gradually received attention from Congress.'