Elizabeth Warren Warns of Market Crash if Fed Chair Removed

3 mins mins

Key Points:

Elizabeth Warren warns against removing Fed Chair Powell, impacting markets.
Potential market crash highlighted by Fed independence concerns.
Heightened volatility in equity and crypto markets observed.

According to CoinMarketCap, as of April 17, 2025, Bitcoin (BTC) is trading at $84,724.22, with a market cap of $1.68 trillion. It holds a market dominance of 63.26%. Recent movements show a 0.21% 24-hour decline, contrasting with a 7.18% gain over the past week.

The Coincu research team points out that these developments could lead to broader discussions on regulatory measures targeting political influences on financial structures. Data-driven insights suggest future policies may focus on safeguarding market dynamics against such disruptions, aiming for a balanced regulatory environment. SEC’s recent actions exemplify the regulatory considerations in play as market conditions evolve.

Elizabeth Warren’s Warning on Fed Chair Dismissal

Elizabeth Warren, a U.S. Democratic Senator and long-standing critic of cryptocurrency and Fed’s leadership, has cautioned that removing Jerome Powell from his position could lead to a drastic U.S. market crash. This scenario, she suggests, stems from the potential loss of market confidence if political interference were to undermine the Federal Reserve’s independence.

The likelihood of such a move has amplified market anxieties, leading to observable instability across traditional financial sectors. Notably, U.S. stock index futures have seen declines, with Nasdaq futures dropping by 2%. Market participants are increasingly concerned about how this uncertainty might shape future macroeconomic policies.

“If the U.S. President could fire Federal Reserve Chair Powell, it would lead to a U.S. market crash.” – Elizabeth Warren, U.S. Democratic Senator from Massachusetts

Market Reactions and Bitcoin’s Price Movement

Did you know? Past U.S. presidential criticisms of Fed Chairs, like Trump’s conflict with Powell in 2019, sparked significant market volatility and increased global concerns regarding Fed independence. President Trump’s policies further raised concerns within the market.

Crypto markets have mirrored these broader financial reactions, with Bitcoin’s price slipping below $84,000, a roughly 1% decline in 24 hours. High-profile figures such as Frederick Rieder of BlackRock have noted the pervasive climate of uncertainty, emphasizing the need for stability amid these heightened concerns about monetary leadership.