President Donald Trump has stepped up his campaign against Fed Chair Jerome Powell to a level that is making markets nervous. Trump said he would fire Powell if he did not resign, and asked former Fed Governor Kevin Warsh to replace him. This threat represents the most direct challenge to the independence of the Federal Reserve in modern American history.
Trump has been pushing for low interest rates, during his first term from 2017 to 2021 and now. The argument is straightforward: cheap money stimulates the economy. Powell’s argument is also simple: The Fed makes decisions based on data, not the whims of the Oval Office.
The Department of Justice completed the investigation of Powell on April 27, 2026. This period, which coincides with the efforts of Republicans to install Warsh at the Fed, was not recognized by market participants. Many interpreted the succession as a political strategy to prepare for a change in leadership.
Powell steered the Fed through the COVID-19 pandemic, the inflation that followed, and a banking crisis that threatened to worsen.
Bitcoin surpassed $92K in January 2026 during the previous debate between Trump and Powell. The move reflects a growing sentiment among investors that a well-diversified economy can act as a bulwark against risks posed by the Fed’s reduced independence.
Bitcoin has no seat that can be fired. His monetary policy, if you can call it that, is written in code. The delivery schedule does not change because someone writes at 6 AM.
Crypto experts said that the political pressure on the Fed could make the economy more stable. The idea is not that Bitcoin will replace the dollar tomorrow. It is that every time the freedom of financial institutions is put into question, the issue of having another financial sector outside the system becomes a little stronger.
