{"id":73381,"date":"2026-06-01T07:53:48","date_gmt":"2026-06-01T07:53:48","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/powell-warns-the-federal-reserve-wont-survive-if-a-president-can-fire-officials-over-policy\/"},"modified":"2026-06-01T07:53:48","modified_gmt":"2026-06-01T07:53:48","slug":"powell-warns-the-federal-reserve-wont-survive-if-a-president-can-fire-officials-over-policy","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/powell-warns-the-federal-reserve-wont-survive-if-a-president-can-fire-officials-over-policy\/","title":{"rendered":"Powell Warns the Federal Reserve Won&#8217;t Survive if a President Can Fire Officials Over Policy"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<p><span style=\"font-weight:400\"><\/p>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Powell said the Federal Reserve forfeits public trust if a president can dismiss officials over policy, per June 1 remarks.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">The warning came amidst a time when the Supreme Court is weighing Trump\u2019s bid to remove Governor Lisa Cook over fraud claims.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Kevin Warsh now leads the Fed, leaving 2026 rate expectations and crypto liquidity tied to its independence.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p><\/span><\/p>\n<h2><span style=\"font-weight:400\">A Direct Defense of Central Bank Independence<\/span><\/h2>\n<p><span style=\"font-weight:400\">Powell delivered the comments while accepting the John F. Kennedy <\/span><a href=\"https:\/\/abcnews.com\/Business\/wireStory\/jerome-powell-jfk-award-speech-warn-political-pressure-133473910\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight:400\">Profile in Courage Award<\/span><\/a><span style=\"font-weight:400\"> in Boston, in one of his most pointed defenses of the institution he led for nearly eight years. He argued that if any administration removes Federal Reserve officials over policy differences, future administrations are likely to do the same, resulting in the public losing faith that the central bank acts in the interest of all Americans. Stripped of that trust, he said, the Fed would forfeit the credibility that underpins a strong and stable economy.<\/span><\/p>\n<p><span style=\"font-weight:400\">The comments <\/span><span style=\"font-weight:400\">were <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-06-01\/powell-says-fed-credibility-lost-if-president-can-fire-officials\" target=\"_blank\" rel=\"noopener noreferrer\">notable for their bluntness<\/a>, given central bankers typically avoid weighing in on live political fights, but Powell framed the matter as existential rather than partisan. The Federal Reserve, he suggested, will not survive as an independent institution if its officials can be dismissed simply for holding unpopular views on interest rates or <span>inflation<\/span>.<\/span><\/p>\n<figure id=\"attachment_818936\" aria-describedby=\"caption-attachment-818936\" style=\"width:737px\" class=\"wp-caption aligncenter\"><figcaption id=\"caption-attachment-818936\" class=\"wp-caption-text\">Image source: X<\/figcaption><\/figure>\n<p><span style=\"font-weight:400\">Powell\u2019s timing was no accident as his remarks coincide with the Supreme Court\u2019s deliberations over Trump\u2019s attempt to remove Governor Lisa Cook, whom the president has sought to fire over unproven mortgage-fraud allegations. The case is widely seen as the most serious <\/span><a href=\"https:\/\/news.bitcoin.com\/federal-reserve-gets-probed-by-doj-chair-powell-alleges-feds-independence-is-at-stake\/\"><span style=\"font-weight:400\">test of Fed independence<\/span><\/a><span style=\"font-weight:400\"> in decades, because a ruling for the White House would establish that a sitting president can purge the central bank\u2019s leadership at will.<\/span><\/p>\n<p><span style=\"font-weight:400\">Powell, who stepped down as chair earlier in 2026, still holds a seat on the Board of Governors and has signaled he intends to stay until his governor term ends in January 2028. That keeps him a visible figure even after <\/span><span style=\"font-weight:400\">handing the gavel<\/span><span style=\"font-weight:400\"> to Kevin Warsh, who <\/span><a href=\"https:\/\/news.bitcoin.com\/kevin-warsh-takes-fed-chair-oath-as-fomc-gives-unanimous-backing\/\"><span style=\"font-weight:400\">took the Fed chair oath<\/span><\/a><span style=\"font-weight:400\"> with unanimous backing from the Federal Open Market Committee (FOMC). <\/span><\/p>\n<p><span style=\"font-weight:400\">Lawmakers were <\/span><a href=\"https:\/\/news.bitcoin.com\/kevin-warsh-confirmed-as-fed-chair-as-lawmakers-split-on-independence\/\"><span style=\"font-weight:400\">split sharply over independence<\/span><\/a><span style=\"font-weight:400\"> during Warsh\u2019s confirmation, a divide Powell\u2019s speech has reignited.<\/span><\/p>\n<h2><span style=\"font-weight:400\">Why <span>Crypto<\/span> Markets Are Listening<\/span><\/h2>\n<p><span style=\"font-weight:400\">For digital-asset investors, the fight is more than a constitutional curiosity. The Federal Reserve sets the price of money, and its perceived independence shapes expectations for interest rates, the dollar, and the appetite for risk assets (with <span>bitcoin<\/span> being one of them). A central bank seen as bending to political pressure could be pushed toward looser policy, a scenario some traders associate with higher <span>bitcoin<\/span> prices but also with the currency-debasement fears that have long fueled the asset\u2019s \u201chard money\u201d narrative.<\/span><\/p>\n<p><span style=\"font-weight:400\">Should the Supreme Court side with Trump, analysts warn the resulting uncertainty over monetary policy could inject fresh <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-volatility\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">volatility<\/a> across both equities and <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">crypto<\/a>. <\/span><span style=\"font-weight:400\">Powell also tied the stakes to the broader institutional fabric, using the award platform to caution against political pressure on the courts and schools as well as the central bank. <\/span><\/p>\n<h2><span style=\"font-weight:400\">The Coming Weeks Are Crucial<\/span><\/h2>\n<p><span style=\"font-weight:400\">A decision affirming presidential authority to remove governors would, in Powell\u2019s telling, hand every future administration the same lever and erode the firewall between politics and monetary policy. <\/span><\/p>\n<p><span style=\"font-weight:400\">Either way, Powell has made clear he intends to keep speaking out from his governor\u2019s seat, even as Warsh runs policy. For <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">crypto<\/a> traders watching <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-liquidity\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">liquidity<\/a> conditions, the message is that the Fed\u2019s credibility (and the rate path that flows from it) may hinge less on near-term economic data than on a courtroom in Washington.<\/span><\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/powell-fed-independence-warning\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways Powell said the Federal Reserve forfeits public trust if a president can dismiss officials over policy, per June 1 remarks. The warning came amidst a time when the Supreme Court is weighing Trump\u2019s bid to remove Governor Lisa Cook over fraud claims. Kevin Warsh now leads [&hellip;]<\/p>\n","protected":false},"author":3947362404,"featured_media":73382,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/73381"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362404"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=73381"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/73381\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/73382"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=73381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=73381"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=73381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}