Pompliano Warns Trump Firing Fed Chair Would Set Dangerous Precedent

Crypto investor and entrepreneur Anthony Pompliano has spoken out against former U.S. President Donald Trump’s recent threat to fire Federal Reserve Chair Jerome Powell, warning that such a move would undermine the institutional independence of the Fed and set a dangerous precedent.

In a video posted to X on April 18, Pompliano cautioned against politicizing the U.S. central bank.

“I do not believe that the President of the United States should come in and unilaterally fire the Fed President,” he said. “The idea of firing the Fed chairman is a very bad precedent to set this way.”

Pompliano’s comments followed a post from Trump on his platform Truth Social on April 17, where the former president criticized Powell for not cutting interest rates quickly enough.

“Powell’s termination cannot come fast enough!” Trump wrote, sparking renewed concern over political interference in monetary policy.

While acknowledging that the Fed is already viewed by many as politicized, Pompliano insisted that retaliating through executive overreach isn’t the solution.

“Even if someone is doing something wrong, it doesn’t justify doing something wrong in return,” he said.

Despite being a vocal critic of the Fed himself, Pompliano emphasized the importance of preserving the institution’s operational independence.

Lower interest rates are generally viewed as beneficial for risk-on assets like Bitcoin, which often surge in more accommodative monetary environments.

However, Pompliano stressed that market benefits should not come at the cost of institutional integrity.

Why is the price of bitcoin flat? Should Trump fire Jerome Powell? Will The US lose reserve currency status?

I answer your questions pic.twitter.com/S7Q6hANR3H

The crypto entrepreneur is not alone in voicing concern. Senator Elizabeth Warren also warned that removing Powell would damage investor confidence and could spark broader market instability.

Speaking to CNBC, Warren said, “If Chairman Powell can be fired by the President of the United States, it will crash the markets.”

She added that U.S. economic strength depends on the perception of independence among key institutions like the Fed.

“If interest rates in the United States are subject to a president who just wants to wave his magic wand, this doesn’t distinguish us from any other two-bit dictatorship,” Warren said.

Trump has consistently pressured Powell over rate policy since his time in office and has recently renewed calls for his removal.

Florida Senator Rick Scott echoed these sentiments, writing in a Fox News op-ed that the Fed needs a leadership overhaul focused on “fighting for the American people.”

The Fed last cut interest rates back in December 2024, with Powell repeatedly saying that he wants compelling evidence of cooling inflation before doing so again.

By comparison, the European Central Bank has already slashed its main rate three times so far in 2025, which is the source of Trump’s frustration.

Despite all of this uncertainty, there are those who argue that a diminished dollar could be advantageous for Bitcoin in the medium to long-term.

Real Vision founder Raoul Pal has long believed that a weaker greenback encourages investors to try and preserve wealth through alternatives like BTC.

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