Jerome Powell's resignation could crash markets and hurt cryptocurrencies, warns Elizabeth Warren
- Powell’s resignation could affect cryptocurrency prices
- Elizabeth Warren Defends Federal Reserve Independence
- Interest rates directly influence the crypto market
Massachusetts Senator Elizabeth Warren warned that the possible resignation of Jerome Powell as Federal Reserve chair could destabilize financial markets and undermine confidence in the U.S. economy. In an interview with CNBC, Warren argued that the U.S. president does not have the legal authority to remove Powell and that any attempt to do so would represent a direct attack on the independence of monetary policy.
According to Warren, the mere fact that the US president could remove the Fed chairman would weaken the country’s financial infrastructure. “If Chairman Powell could be fired by the president of the United States, that would send markets into a tailspin. The infrastructure that keeps this stock market strong, and therefore much of our economy, and much of the world economy, is the idea that the big pieces move independently of politics,” he said.
She also said that allowing such action would turn the United States into a “second-rate dictatorship,” referring to political influence over fundamental economic decisions such as interest rates. These rates, which directly impact the prices of risky assets, including cryptocurrencies, have been a point of tension between the Federal Reserve and former President Donald Trump.
Trump again criticized Powell in a post on Truth Social on April 17, calling for his resignation and accusing the Fed chairman of hesitating to cut interest rates. Lowering interest rates has been championed by Trump as a way to boost the economy, but it is often seen as a move that could boost cryptocurrency prices.
Senator Rick Scott also came out in favor of Powell's ouster, arguing that it is necessary to "eliminate everyone at the Federal Reserve who is not willing to help the American people."
Market analyst Anthony Pompliano suggested that Trump was deliberately putting pressure on markets to force a lower interest rate policy. Pompliano cited the drop in the yield on the 10-year Treasury note to 4%, which recently climbed back to 4,3%.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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