Senator Cynthia Lummis offered harsh criticism of Federal Reserve Chair Jerome Powell, pointing to his mismanagement of economic development and allegations of perjury.
Lummis’ Critique of Powell
In a Fox Business interview, Senator Lummis expressed her concerns about Powell's management of Operation Chokepoint 2.0, emphasizing that it resulted from poor decisions that led to banking issues. According to Lummis, "he used weasel words" when discussing his actions before Congress, which raises questions about his truthfulness.
Operation Chokepoint 2.0 and Powell’s Role
Initially perceived as a conspiracy theory, Operation Chokepoint 2.0 became a topic of discussion after the Coinbase team released documents that showed pressure on banks to halt services for cryptocurrency clients. Although the Federal Reserve was not the primary force behind the debanking of crypto clients, its response to these events has caused dissatisfaction and distrust in the crypto community.
The Powell vs. Trump Conflict
In 2025, President Trump repeatedly urged Powell to cut interest rates. This pressure created a conflict of interest given that the Fed must control inflation levels. The conflict led Trump to threaten Powell with termination, although this would require Supreme Court intervention.
The challenges faced by Jerome Powell highlight the fragility of the Federal Reserve's independence and the possible consequences of his actions on the economy and the crypto market.
