Can Trump Fire Fed Chair Jerome Powell—And What Does That Mean For Crypto?

Key Points

1. President Trump and Federal Reserve Chair Jerome Powell are in a public dispute over interest rate cuts, with Republicans criticizing the Fed's 'higher-for-longer' stance.

2. Trump may attempt to weaken Powell's influence by naming a successor or creating a 'shadow' central bank chief to push for rate cuts.

3. Legal protections under the Federal Reserve Act and precedent from Humphrey's Executor v. United States prevent Trump from firing Powell over policy disagreements.

4. The uncertainty from this clash could increase short-term volatility in crypto markets, with some viewing crypto as a potential safe haven.

5. Rep. Anna Paulina Luna filed a criminal referral against Powell, accusing him of misleading Congress about Fed headquarters renovation costs, escalating tensions.