This is a segment from the Forward Guidance newsletter. To read full editions, subscribe . President Trump is still going after Fed Chair Powell. In a Monday Truth Social Post, Trump reiterated that he wants to see lower interest rates now, adding that Powell is “a major loser.” Trump is hardly the first president to voice frustrations with the Fed and its leadership. But he is the only sitting president in modern history who has publicly threatened to fire the chair. Both Joe Biden and Barack Obama — during their respective terms — said they were disheartened by slow progress on inflation, but each also stressed their respect for the central bank’s independence. Of course, there’s the question of whether or not the president has the authority to remove a sitting Fed chair . Given what we’ve already seen from this administration (remember what happened at the FTC?), I’d argue fleshing out the legal argument is perhaps moot. Trump has shown us that he’ll usually do what he wants. Should the courts uphold his decision to remove FTC commissioners, Powell’s job is even more at risk. ECB President Christine Lagarde said during a Tuesday morning CNBC appearance that she hopes the Fed maintains its independence. Though she, too, has faced political pressures. When asked about what impact firing Powell could have, she declined to speculate. “I’m not going to comment on market reaction to hypotheticals that I hope are just not on the table,” Lagarde said. One argument is that growing tensions between the Fed and executive branch could boost the price of bitcoin. I’d have to disagree, though. The Fed’s independence is a key stabilizing factor of the economy, and removing this would surely damage risk assets. For now at least, bitcoin still trades like a risk asset. I’ll go ahead and apologize now to any bitcoin maximalists I may have offended. Get the news in your inbox. Explore Blockworks newsletters: Blockworks Daily : Unpacking crypto and the markets. Empire : Crypto news and analysis to start your day. Forward Guidance : The intersection of crypto, macro and policy. 0xResearch : Alpha directly in your inbox. Lightspeed : All things Solana. The Drop : Apps, games, memes and more. Supply Shock : Bitcoin, bitcoin, bitcoin.
