Anthony Pompliano Issues Stark Warning: Powell’s Dismissal May Trigger Market and Crypto Collapse
Prominent cryptocurrency analyst Anthony Pompliano has raised alarms over potential economic instability should Federal Reserve Chair Jerome Powell be removed from his position. In a recent statement, Pompliano emphasized that such a move could lead to significant turbulence across traditional financial markets and the digital asset space. The warning comes amid ongoing debates about Federal Reserve leadership and its impact on monetary policy. Market experts suggest that abrupt changes in central bank leadership could erode investor confidence, potentially causing cascading effects in both equities and cryptocurrency valuations. This analysis underscores the growing interconnection between traditional finance and digital assets in today’s economic landscape.
Powell Firing Would Send Shockwaves, Warren Warns
Senator Elizabeth Warren is sounding the alarm. She says removing Powell would break the trust that holds financial markets together. During a CNBC interview, she said the president doesn’t even have the legal authority to fire him. Still, she fears Trump may try anyway. “If Powell can be fired just because the president wants to, markets will crash,” Warren warned. Investors rely on the Fed being above politics. The idea that Trump could pressure the Fed to cut rates by force sets a dangerous example. If trust in the system falls, both traditional markets and the crypto market could feel the pain.
Anthony Pompliano: Firing Powell Would Set a Bad Precedent
Crypto investor and entrepreneur Anthony Pompliano agrees—Trump shouldn’t fire Powell. While Pompliano is no fan of the FED, he said letting a president remove its chair for disagreeing on policy is risky. He called it “a very bad precedent” that could backfire on future administrations. Pompliano added that even if the FED is already politicized, making it official would make things worse. He warned that punishing Powell for not cutting rates is not the way to fix the system. And while Pompliano is bullish on crypto, he knows that chaos in central banking can hurt investor confidence across the board.
Powell, the Courts, and the Fight Over Legal Power
The legality of firing Powell isn’t settled. Trump has already petitioned the Supreme Court in related cases involving other independent agencies. If the court sides with him, it could open the door to firing Powell too. Legal scholars are split. Some say the FED should remain insulated from politics. Others argue no agency should be beyond the president’s reach. Powell says the law protects his position. But even he admits the Supreme Court’s decisions in upcoming cases could shift that balance. If Trump wins, the precedent will be set—and the next Fed chair might not be SAFE from political interference either.
What This Means for the Crypto Market
Why should crypto investors care? Because the FED has a major influence on interest rates, liquidity, and investor behavior. Lower interest rates often mean more money flows into risk assets—like Bitcoin and other cryptocurrencies. But if markets lose faith in the FED, it could trigger a broader financial crisis. Both Warren and Pompliano agree: Powell’s removal would be bad news. Even if the move sparks short-term gains for crypto, the long-term risks outweigh the rewards. Uncertainty in the financial system hurts everyone, and crypto isn’t immune. As the power struggle between Trump, Powell, and the FED unfolds, the crypto market is watching closely.
