Trump Attempts Dismissal of Fed Board Member, Markets React Negatively

Trump has called for the immediate dismissal of Fed board member Cook, who plans to contest this in court. If successful, Trump would gain majority control of the Fed’s board, risking central bank independence.

Market reactions include:

Increased bond yields
Weakened dollar

Economists warn that such political interference could undermine trust in U.S. economic management, drawing parallels with Turkey.

The implications for cryptocurrency include:

Short-term increase in investment in riskier assets like Bitcoin and Ethereum due to lower interest rates and a weaker dollar
Long-term interest in decentralized alternatives if trust in U.S. institutions declines

If confidence in the Fed diminishes, crypto may become a hedge against political influence on monetary policy.