Pompliano says Don’t Fire Powell Over Disagreements
In a recent video posted on X, Pompliano voiced strong opposition to Trump’s threat to fire Jerome Powell. He stated, “I do not believe that the President of the United States should come in and unilaterally fire the Fed President.” He further explained that firing Powell simply because of a disagreement on monetary policy sets a dangerous precedent. It’s potentially undermining the independence of the Federal Reserve. Pompliano expressed concern that such an action would damage trust in the Federal Reserve’s decision-making process. “The idea of firing the Fed chairman is a very bad precedent to set this way,” he added, stressing that the move could disrupt the delicate balance between political influence and the central bank’s role.
The Real Problem: Political Influence on the Fed
Pompliano acknowledged that the Federal Reserve isn’t truly independent, as many critics claim, but still argued that interfering with its leadership in this way would cause more harm than good. While the Fed’s decisions are often seen as politically influenced, Pompliano emphasized that responding to these influences by firing its chair would lead to even greater instability.
Though he’s been vocal about his dissatisfaction with the Fed’s policies in the past, Pompliano made it clear that “just because somebody else is doing something wrong doesn’t mean that you should do something wrong.” His comments suggest that, while the Fed may not be perfect, the solution isn’t to remove its chair based on political disagreements.
Warren’s Concerns: A Risk to Market Stability
Pompliano’s thoughts align with those of US Senator Elizabeth Warren, who recently warned that Trump’s move to fire Powell could trigger a loss of investor confidence in the integrity of US capital markets. She pointed out, “A big part of our economy being strong, and a big part of the world economy being strong, is the idea that the big players move independently of politics.” This brings up a bigger worry: if investors start believing that the Federal Reserve is being influenced by political forces, they might lose faith in the stability of the financial system. For markets like Bitcoin price, this could be a game-changer. As traditional markets face more uncertainty, people might start looking to cryptocurrencies as a way to protect themselves, though of course, that would depend on a bunch of other factors.
The Bottom Line: Pompliano’s Advice
Pompliano’s perspective is clear: firing the Fed chair over policy disagreements is a slippery slope. He thinks making such a drastic move, especially with Donald Trump pushing the idea, could hurt the financial system and shake confidence in US economic leadership. With the Bitcoin price often reacting to economic uncertainty, Pompliano’s advice is simple: keep the Fed’s leadership intact and avoid politically driven decisions, or risk wider damage.
Source: Coinfomania / Digpu NewsTex