Could Trump Actually Dismiss Fed Chair Powell? Pompliano Highlights Risks of Political Interference

As speculation grows over whether former President Donald Trump would attempt to remove Jerome Powell as Federal Reserve Chair if re-elected, industry experts like Anthony Pompliano warn such a move could destabilize central bank independence. Political pressure on monetary policy decisions risks eroding market confidence and setting a concerning precedent for future administrations. The debate underscores the delicate balance between presidential authority and the Fed’s operational autonomy, particularly amid ongoing economic uncertainty.

In Brief

• Donald Trump threatens to dismiss Jerome Powell.
• This politicization worries the markets, which fear a major institutional shock.
• Bitcoin could benefit, but a widespread panic is not excluded.
• The risk: seeing confidence in the dollar erode in favor of alternative assets.

Donald Trump vs. the Fed: an explosive institutional precedent

The Federal Reserve, the guardian of American monetary policy, is supposed to operate shielded from political whims. Yet Donald Trump defies this norm with calculated audacity. By accusing Powell of delays in lowering interest rates, the former president turns a technical debate into a personal showdown. A gesture heavy with meaning, according to Anthony Pompliano: “Firing over disagreement is opening Pandora’s box.”

Why? Because the Fed’s credibility rests on its neutrality. Even imperfect, even criticized for its lack of transparency, it embodies a form of stability.

Openly politicizing it is undermining its legitimacy. “The Fed is already under influence, but firing its chair would be an admission of submission,” nuances Pompliano. A paradox: denouncing an institution while weakening it further.

The consequences go beyond the United States. International markets scrutinize every Ripple at the Fed. An arbitrary dismissal would send a chaotic signal: what if each administration change swept away monetary priorities? “That’s playing with institutional fire,” summarizes the entrepreneur. A fire that could consume investor confidence, already shaken by geopolitical turbulence.

But the danger does not stop at the Fed’s doors. This threat, if realized, could trigger a chain reaction with unpredictable repercussions. From traditional markets to crypto-assets, no one would escape.

Financial Domino: Bitcoin on watch, markets on alert

Elizabeth Warren bluntly states: a manipulated Fed would equal a programmed crash. Why? Because monetary independence is the cement of trust.

Without it, every decision becomes suspect. Interest rates, a key tool to curb inflation, would be seen as partisan weapons. Result: capital flight, extreme volatility, distrust in the dollar.

In this climate, cryptos would play an ambiguous role. Historically, low rates boost their attractiveness by injecting liquidity into risky assets. A Trump forcing the Fed’s hand could therefore, ironically, benefit bitcoin.

But beware: a major institutional crisis would also create a reflex of widespread panic. Investors would seek SAFE havens, but which ones? Gold, the dollar… or stablecoins?

Precisely, Jerome Powell recently argued for a strengthened legal framework around stablecoins. Troubling timing. While Trump waves the threat of a coup, the Fed tries to secure a booming sector. “A way to anticipate the turbulence,” analyzes Pompliano. For if politics seeps into money, decentralized assets could appear as an escape route – or a crisis amplifier.

Donald Trump is no novice when it comes to financial provocations. But this time, the risk is on another scale. By attacking the Fed, he is not just challenging a political opponent: he shakes a pillar of the global economy. Between an institutional precedent and market chaos, the room for maneuver shrinks. One question remains: are markets, accustomed to his fireworks, underestimating the potential earthquake? The answer could well seal the next chapter of modern finance.

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