David Edwards
Anthony Pompliano, a cryptocurrency investor and entrepreneur, has issued a strong warning against former US President Donald Trump’s proposal to fire Federal Reserve Chairman Jerome Powell, describing it as a “very bad precedent” for American institutional independence and economic policy.
Pompliano stressed that firing Powell over policy differences would be a risky move in a video that was released on X (previously Twitter) on April 18.
“I do not believe that the President of the United States should come in and unilaterally fire the Fed President,” Pompliano stated. “Where you have a disagreement and then the firing, I think that’s not really the area that we want to go into.”
Trump’s comments, made on his platform Truth Social on April 17, accused Powell of being excessively slow in reducing interest rates, declaring, “Powell’s termination cannot come fast enough!”
Pompliano acknowledged that the Federal Reserve asserts political independence, but he questioned this claim. He said, “The Fed, I think, is highly politicized, even though they pretend not to be,” on his program From The Desk of Anthony Pompliano.
Pompliano emphasized the significance of maintaining institutional integrity despite his criticism of the Federal Reserve’s recent policies.
“I still think that just because somebody else is doing something wrong doesn’t mean that you should do something wrong,” he said.
These worries have been shared by prominent parliamentarians. Speaking on CNBC, U.S. Senator Elizabeth Warren cautioned that any effort by Trump to fire Powell might seriously undermine market trust and possibly lead to a financial meltdown. “A big part of our economy strong, and a big part of the world economy strong, is the idea that the big pieces move independently of politics,” Warren said.
The Federal Reserve is becoming more active in determining the regulatory framework for digital assets at the time of this controversy. Powell reaffirmed his support for a clear legal framework for stablecoins on April 16 at a panel discussion held at the Economic Club of Chicago. He pointed out that widespread adoption of digital currencies necessitates strict regulatory control.
