Trump After Federal Reserve Governor Lisa Cook, Where Does Crypto Market Stand?

TheNewsCryptoPubblicato 2026-01-22Pubblicato ultima volta 2026-01-22

Introduzione

US President Donald Trump is reportedly seeking to remove Federal Reserve Governor Lisa Cook before her term ends in 2038, a move the US Supreme Court warns could undermine the central bank's independence and trigger an economic crisis. This follows similar threats against Fed Chair Jerome Powell, whom Trump previously targeted for not cutting interest rates. For the crypto market, these developments are critical as they influence expectations around rate cuts. While lower rates could boost cryptocurrency prices, the Fed's current stance remains focused on balancing inflation and growth, with little indication of imminent cuts. The outcome of these conflicts may significantly impact crypto market volatility.

US President Donald Trump is reportedly chasing the ouster of the Federal Reserve Governor. The US Supreme Court has weighed in by flagging risks associated with it. This comes after reports emerged about Trump going after the Fed Chair. For the crypto market, any movement in this context could cause an imbalance in inflation, growth, and thereby volatility.

Trump Vs. Lisa Cook

Donald Trump is looking to fire Lisa Cook before her term ends. However, the US Supreme Court has flagged that such a move could put a dent on the independence of the central bank. Moreover, firing Cook could trigger a real-world economic crisis.

According to a report by Reuters, such an interference by the US President would potentially open the door to removing policymakers without following any prescribed order. Justice Brett Kavanaugh argued with Solicitor General D. John Sauer, saying that the absence of judicial review or any other process could lead to a search-and-destroy mission.

Lisa Cook assumed her position in 2022 under the Biden Administration, with the tenure scheduled to last till 2038.

Trump Vs. Jerome Powell

This is not the first time that Donald Trump has gone after someone in the US Federal Reserve. He earlier targeted the Fed Chair Jerome Powell, threatening to launch a criminal investigation via the Department of Justice (DoJ). Powell defended his position, citing that it was a tactic to pressure him into cutting rates.

Notably, Jerome Powell gained support from the heads of top banks like the Bank of England, the European Central Bank, and the Bank of Canada.

A case against Lisa Cook is reportedly on the same line. Trump earlier pointed out that he would install someone with the same thought process – hinting that the next hire could cut rates instead of defending them like Powell has done. For Cook, Trump has cited mortgage fraud allegations to make her ouster happen.

What’s For Crypto Market?

Most of the fuss is over rate cuts. Currently, there is little to no chance that the US Federal Reserve will cut rates. They could stay the same given the central bank is tasked to balance inflation, growth, and the employment rate, among other factors.

A rate cut could accelerate the price surge for cryptocurrencies, but it is also likely to influence the inflation rate, which increased slightly to 2.71% in December 2025. Thereby affecting crypto prices eventually. Moreover, employment rate and job growth rate have sent mixed signals to convince a rate cut.

Suffice it to say, what happens next in Trump vs Cook and/or Trump vs Powell could carve the movement of crypto prices on the charts.

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Domande pertinenti

QWhat is the potential impact of Trump's attempt to remove Federal Reserve Governor Lisa Cook on the crypto market?

AAny movement in this context could cause an imbalance in inflation, growth, and thereby increase volatility in the crypto market.

QWhat reason did the US Supreme Court cite for flagging risks associated with Trump's move against Lisa Cook?

AThe US Supreme Court flagged that such a move could damage the independence of the central bank and potentially trigger a real-world economic crisis.

QHow did Jerome Powell, the Fed Chair, respond to earlier targeting by Donald Trump?

AJerome Powell defended his position, citing that Trump's threats were a tactic to pressure him into cutting interest rates.

QWhat is the current stance of the US Federal Reserve on interest rate cuts, and how does it relate to crypto?

ACurrently, there is little to no chance that the US Federal Reserve will cut rates. A rate cut could accelerate the price surge for cryptocurrencies but is also likely to influence the inflation rate, thereby affecting crypto prices.

QWhat specific allegation has Trump used to justify the ouster of Lisa Cook?

ATrump has cited mortgage fraud allegations to justify the ouster of Lisa Cook.

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