Crypto investor and entrepreneur Anthony Pompliano has warned that Donald Trump's public threat to fire Federal Reserve Chair Jerome Powell could not only endanger the institutional independence of the Fed but also undermine the very foundation of U.S. financial stability.

In a video post on X, 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. The idea of firing the Fed Chairman is a very bad precedent to set this way."

Firing Powell Sets a Dangerous Precedent

Pompliano's comments followed a post by President Trump on his platform Truth Social on April 17, where Trump criticized Powell for not cutting interest rates quickly enough.

"Chairman Jerome Powell is always late, but he could now change his image, and quickly. CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITIC!"

Pompliano added that although he is not a huge fan of the Fed, he still disagrees with Trump's approach of firing someone he disagrees with. He explained that even if the Fed had made mistakes, retaliating in this way is not the right solution.

He also noted that the Fed is already viewed by many as politicized. While it is meant to operate independently, Pompliano agrees with critics who argue the institution lacks true autonomy.

"The Fed, I think, is highly politicized, even though they pretend not to be."

Pompliano’s concerns are echoed by lawmakers like Senator Elizabeth Warren, who warned that firing Powell could shatter investor confidence and send markets into a tailspin.

“A big part of our economy being strong, and a big part of the world economy being strong, is the idea that the big pieces move independently of politics.”

Short-Term Gains, Long-Term Costs

While lower interest rates often fuel rallies in risk assets like Bitcoin, Pompliano cautioned that sacrificing the Fed’s operational independence for short-term market gains is a dangerous tradeoff.

He stressed that institutional integrity should not be compromised for the sake of crypto or equity price surges.

Trump’s renewed attacks on Powell come as the European Central Bank has already slashed rates multiple times in 2025, intensifying political pressure on the Fed.

Some in the crypto space argue that a weaker U.S. dollar could ultimately benefit Bitcoin, but the immediate risk is clear: undermining the Fed’s independence could destabilize both traditional and digital markets, with consequences felt worldwide.

As the debate rages on, the message from crypto leaders and policymakers is unified—preserving the Fed’s independence is essential for market stability, economic strength, and the future of digital assets.