Crypto Entrepreneur Warns Trump Firing Powell Sets Dangerous Precedent

Crypto entrepreneur Anthony Pompliano has expressed his opposition to the idea of US President Donald Trump firing the head of the US Federal Reserve, Jerome Powell. Pompliano believes that such an action would set a dangerous precedent, especially given the underlying motives behind it. He made these remarks in a video posted on X on April 18, stating that the President of the United States should not unilaterally fire the Fed President.

Pompliano emphasized that firing someone over a disagreement is a slippery slope and not the direction the country should be heading in. He described the idea of firing the Fed chairman as a very bad precedent to set. This comes after Trump took to his social media platform Truth Social to accuse Powell of being too slow to cut interest rates, stating that Powell’s termination cannot come fast enough.

Pompliano acknowledged that while the Fed is meant to operate independently, it is highly politicized despite its pretenses. He also admitted his own criticism of the Fed but stressed that responding in kind to perceived mistakes is not the right approach. He believes that just because someone else is doing something wrong does not mean that one should do something wrong in response.

US Senator Elizabeth Warren has also warned that if Trump were to fire Powell, it could undermine investor confidence in the integrity of US capital markets and potentially trigger a financial crash. Warren highlighted that a significant part of the strength of the US and global economies relies on the idea that major institutions operate independently of politics.

Pompliano’s comments come at a time when the Fed’s actions and decisions are under intense scrutiny. The Fed’s policies, including interest rate adjustments, have significant implications for the broader economy and financial markets. Lower interest rates often lead to increased liquidity, which historically has increased the price of perceived riskier assets. However, the focus here is on the political and institutional implications rather than the direct impact on financial markets.