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Firing Powell Could Set Dangerous Precedent and Harm Crypto, Warns Pompliano
The recent threat to fire Federal Reserve Chair Jerome Powell by President Trump has sparked concerns from crypto investor Anthony Pompliano. According to him, firing the Fed chairman would undermine the institutional independence of the central bank and set a dangerous precedent for Bitcoin and other financial markets.
Pompliano believes that it is crucial to protect the Fed’s autonomy and not compromise it for short-term gains in the cryptocurrency market. He emphasized that while rate cuts may boost crypto prices, especially those of Bitcoin, the potential damage to the financial institution outweighs these benefits.
As a known critic of the Federal Reserve himself, Pompliano urged against sacrificing the independence of the institution for the sake of cryptocurrencies. Instead, he argued that it is essential to uphold the integrity of the financial system by maintaining the Fed’s impartiality.
Senator Elizabeth Warren shares similar concerns and warned that firing Powell could lead to significant losses in investor confidence, resulting in market crashes. She emphasized that the US economy would be damaged if the Fed were seen as controlled by the President rather than making data-driven decisions.
Pompliano believes that such a move would set a harmful precedent, allowing future monetary policy decisions to be influenced by politics rather than economic data. This could lead to serious repercussions for investors who might lose trust in the institution and make their investment decisions accordingly.
In light of this development, the financial community is watching closely as Trump continues to apply pressure on Powell to cut interest rates further.
Source: https://coinpedia.org/news/firing-powell-could-set-dangerous-precedent-and-harm-crypto-warns-pompliano/
