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

TheNewsCryptoОпубліковано о 2026-01-22Востаннє оновлено о 2026-01-22

Анотація

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.

Highlighted Crypto News Today:

Strive Targets $150M Raise to Cut Debt and Buy More Bitcoin

Пов'язані питання

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.

Пов'язані матеріали

Will the Next Crypto Bull Run Start with On-Chain Trading of SpaceX?

This article presents a scenario-based forecast for the crypto industry from 2026 to 2029, arguing that the next major cycle will be driven not by technological narratives but by legal access to real-world assets. The author predicts that by mid-2026, pre-IPO perpetual contracts for top private companies like SpaceX, OpenAI, and Anthropic on platforms like Hyperliquid will become the primary gateway for accessing quality assets, as most crypto-native tokens fail to capture real value. The much-hyped AI x Crypto intersection largely fails except for prediction markets, which thrive on betting on AI model supremacy. By 2027, public blockchain foundations are forced to choose between catering to retail speculation or building compliant infrastructure for institutions, with many opting for the latter. Growth in stablecoins and tokenized private credit/equity hits a "triple ceiling" due to regulatory and political uncertainty rather than market demand. The pivotal shift is forecast for 2028. A major liquidation event in pre-IPO perpetuals exposes the structural flaw of synthetic markets lacking a real underlying asset anchor. In response, regulatory changes finally allow the public solicitation of private securities resales to verified accredited investors. This creates a legitimate secondary market for real company equity, which then becomes the core asset class of the new bull market, relegating synthetic perps to a niche role. By 2029, the industry becomes "boring" but foundational. Tokens without claims on real cash flows or assets cease trading. Stablecoin growth is steady but politically capped. Crypto infrastructure fades from view as it gets absorbed into traditional finance backends. The article's central thesis is that the key bottleneck for crypto's next phase is legal and regulatory channels for real asset ownership, not technology.

marsbit29 хв тому

Will the Next Crypto Bull Run Start with On-Chain Trading of SpaceX?

marsbit29 хв тому

Kalshi-CFTC Fight In New Mexico Could Shape Prediction Market Rules

A jurisdictional battle between the U.S. Commodity Futures Trading Commission (CFTC) and the state of New Mexico over the regulation of prediction markets could set national rules for the industry. At issue is who polices platforms like Kalshi, with the CFTC asserting federal oversight and New Mexico arguing state gaming and consumer protection laws apply, especially for contracts resembling wagers on events like elections or sports. The outcome will determine if prediction markets can scale nationally under a clear federal framework or face a fragmented, state-by-state regulatory landscape. This dispute is significant for the crypto-adjacent trading community, which often engages with these speculative event markets. A clearer rulebook could boost mainstream adoption, liquidity, and integration with crypto infrastructure, while a state-led challenge could stifle growth. The case is particularly sensitive for sports-related contracts, where the line between financial markets and gambling blurs. Ultimately, this legal fight will shape whether prediction markets become a scalable national product or remain constrained by jurisdictional conflicts.

bitcoinist1 год тому

Kalshi-CFTC Fight In New Mexico Could Shape Prediction Market Rules

bitcoinist1 год тому

The Value Distribution of Stablecoins

**Summary: The Value Distribution of Stablecoins** The article argues that stablecoins are evolving from mere trading tools into broader channels for dollar access. It divides the stablecoin ecosystem into four layers to analyze how value is distributed: 1. **Issuance Layer:** Mints stablecoins, holds reserve assets, and captures the spread between reserve yield and user costs (e.g., Tether, Circle). This layer currently earns the largest profit margin. 2. **Infrastructure Layer:** Connects stablecoins to the traditional financial system, handling fiat on/off-ramps, banking integration, compliance (KYC/AML), and asset management (e.g., Bridge, BVNK). This is the "unglamorous" but critical work, building the essential bridges between crypto and real-world finance. 3. **Acquiring/Distribution Layer:** Integrates stablecoins into merchant systems, manages payment flows, and provides enterprise financial software (e.g., Stripe, Coinbase). They act as the access point for businesses. 4. **Application Layer:** The end-users and businesses that ultimately use stablecoins for payments, settlements, or as a store of value. They benefit from convenience but have little pricing power. The core thesis is that while the issuance layer currently dominates profits, the often-overlooked **infrastructure layer holds significant long-term potential**. The real challenge and barrier to mass adoption is not the on-chain transfer of stablecoins (which is simple), but the complex "last mile" integration into existing business workflows, banking systems, and regulatory frameworks across different countries. Companies in this layer are currently in a "land grab" phase, investing heavily to build networks, secure bank partnerships, and establish compliance pathways. While their position is currently pressured by the profitable issuers above and distribution platforms below, the article suggests that if stablecoins become a default financial rail for businesses, the infrastructure providers who have done the hard work of integration will ultimately gain strong pricing power and become entrenched, essential players.

marsbit7 год тому

The Value Distribution of Stablecoins

The Value Distribution of Stablecoins The article argues that stablecoins are evolving from a mere trading tool into a broad "dollar channel." It analyzes the industry's value chain through four layers: 1. **Issuance Layer (e.g., Tether, Circle):** The top layer that mints stablecoins, holds reserve assets, and captures the thickest interest rate spread. 2. **Infrastructure Layer (e.g., Bridge, BVNK):** Connects stablecoins to the traditional financial system, handling critical but complex "dirty work" like fiat on/off-ramps, banking integration, compliance (KYC/AML), and cross-border settlement. 3. **Acquiring/Distribution Layer (e.g., Stripe, Coinbase):** Embeds stablecoins into merchant systems, manages payment flows, and integrates with enterprise software. 4. **Application Layer:** End-users and businesses that ultimately use stablecoins for payments, settlement, or storing value. The author posits that while the issuance layer currently captures the most profit, the most overlooked and potentially critical layer is infrastructure. The core challenge for stablecoin adoption isn't the on-chain transfer (which is simple), but bridging the gap between blockchain and the real-world financial system. This involves solving practical problems for businesses: fiat conversion, reconciliation, tax handling, and user onboarding. Infrastructure companies are currently in a difficult "land-grab" phase—building networks, securing banking relationships, and achieving compliance country-by-country. They face pressure from both the profitable issuance layer above and distribution platforms below. However, the author suggests this layer is building a crucial moat. Once stablecoins become a default business rail, the infrastructure players who have done the hard work of integration may gain significant, durable value and pricing power.

链捕手7 год тому

Why Is Nvidia Borrowing $20 Billion When It's Not Short of Cash?

Nvidia's recent announcement to issue at least $20 billion in senior notes, despite holding a strong cash position with over $48.6 billion in free cash flow last quarter, is not a sign of financial need. Instead, it represents a strategic move to leverage its high credit rating (recently upgraded to AA by S&P) to secure low-cost, long-term debt. This capital will support long-term AI infrastructure investments, data centers, R&D, supply chain prepayments, and strategic investments, while allowing the company to continue aggressive shareholder returns through stock buybacks and dividends. The decision reflects a mature capital management strategy: using debt to finance long-term growth assets is more efficient and less dilutive to shareholders than equity financing. It signals that Nvidia, like other tech giants (Alphabet, Meta, Amazon), is entering a new phase of heavy AI capital expenditure, shifting from a pure growth story to a story about capital allocation, credit strength, and long-term ecosystem positioning. The key question for investors is whether Nvidia can maintain its high cash flow generation and ensure that returns from these AI investments justify the cost of capital over the long term. The bond issuance amplifies its expansion capabilities but also ties its valuation more closely to the broader AI investment cycle's sustainability and profitability.

marsbit7 год тому

Why Is Nvidia Borrowing $20 Billion When It's Not Short of Cash?

marsbit7 год тому

Торгівля

Спот

Ф'ючерси