Anthony Pompliano Warns Against Firing Jerome Powell: A Threat to the Fed’s Fragile Independence?
Cryptocurrency advocate and entrepreneur Anthony Pompliano has weighed in on the political firestorm brewing around the U.S. Federal Reserve, following President Donald Trump’s renewed threats to fire Fed Chair Jerome Powell. While Pompliano agrees with critics who claim the Fed is not truly independent, he strongly opposes removing Powell based on policy disagreements.
Trump’s Threat to Fire Powell Reignites Concerns
On April 17, Trump posted to Truth Social declaring, “Powell’s termination cannot come fast enough!” He accused the Fed chair of being too slow in cutting interest rates, suggesting Powell is politically motivated and dragging his feet to hurt Trump’s administration.
This isn’t the first time Trump has clashed with Powell. During his presidency, Trump repeatedly pressured the Fed to lower rates and even explored legal pathways to remove Powell in 2019. While Powell didn’t cave then, the issue has re-emerged as inflation, interest rates, and political tensions rise in 2024.
Pompliano’s Perspective: Don’t Politicize the Fed Further
In a video posted on X (formerly Twitter) on April 18, Pompliano said:
“I do not believe that the President of the United States should come in and unilaterally fire the Fed President.”
He acknowledged that while the Federal Reserve markets itself as independent, its operations often appear politicized:
“The Fed, I think, is highly politicized, even though they pretend not to be.”
However, Pompliano stressed that firing Powell over a disagreement in monetary policy would set a dangerous precedent, making future Fed chairs more vulnerable to political pressure.
“Where you have a disagreement and then the firing, I think that’s not really the area that we want to go into.”
Legal Uncertainty: Can the President Even Fire the Fed Chair?
Legally, it’s unclear whether a president can outright fire the Fed chair. The Federal Reserve Act does not explicitly grant the president that power, and Jerome Powell has previously stated that he believes he cannot be dismissed without cause.
Despite this, Trump appears to be exploring the legal boundaries. According to Reuters, Trump’s economic adviser recently stated that Trump is “studying whether he can fire Powell”
This uncertainty alone could spook investors and disrupt market confidence.
Wider Repercussions: What Experts Are Saying
Elizabeth Warren: Market Stability at Risk
Senator Elizabeth Warren cautioned that any attempt by Trump to fire Powell would shake investor trust and could destabilize global markets:
“A big part of what keeps our economy strong — and the world economy strong — is the idea that the big pieces move independently of politics,” she said on CNBC.
She warned that undermining the central bank’s credibility could trigger a market crash, especially in today’s fragile macroeconomic climate.
Kevin Warsh — A Potential Successor?
Trump’s rumored replacement for Powell could be Kevin Warsh, a former Fed governor known for favoring tighter monetary policy and criticizing the Fed’s pandemic-era stimulus. While some in Trump’s camp see Warsh as a more aligned choice, others argue that installing a loyalist could further politicize monetary policy.
Implications for Crypto and Bitcoin
The stakes are particularly high for the cryptocurrency world. Historically, lower interest rates lead to increased liquidity, which can fuel investment in riskier assets like Bitcoin and other digital currencies.
If Powell is removed and replaced with a chair who supports looser monetary policy, it could ignite bullish momentum in the crypto markets — at least in the short term. However, increased politicization of the Fed could lead to long-term instability, higher inflation risks, and greater volatility in all asset classes.
Pompliano, who is deeply entrenched in the crypto space, cautioned against short-term thinking:
“Just because somebody else is doing something wrong doesn’t mean that you should do something wrong.”
The Bigger Picture: Fed Independence, Crypto, and Stablecoins
Interestingly, this controversy comes at a time when the Fed is increasingly involved in the crypto space. On April 16, Powell participated in a panel at the Economic Club of Chicago where he called for a legal framework for stablecoins:
“The climate is changing, and you’re moving into more mainstreaming of that whole sector, so Congress is again looking […] at a legal framework for stablecoins,” Powell said.
This signals the Fed’s growing recognition of crypto’s place in the financial ecosystem — a move that further emphasizes the need for stable, non-partisan leadership.
Final Thoughts
While Trump’s frustrations with Powell reflect broader political tensions over inflation and interest rates, Anthony Pompliano’s warnings highlight a deeper concern — the delicate balance between monetary policy and political influence.
Firing Powell could offer short-term satisfaction for political actors and speculators, but it risks undermining one of the last bastions of perceived neutrality in the U.S. government.
For crypto investors, the outcome could shape everything from Bitcoin price action to stablecoin regulation. But as Pompliano suggests, the price of politicizing the Fed could be far higher than a few interest rate cuts.
