Political pressure from former President Donald Trump on Federal Reserve Chair Jerome Powell has led to significant turbulence in financial markets. This pressure raises concerns over the independence of the central bank and the stability of the US dollar.
Impact of Political Pressure on the Fed
Donald Trump continues to pressure Jerome Powell, raising questions about the Fed's independence. According to Nick Timiraos of the Wall Street Journal, attempts to influence monetary policy are becoming more apparent. "My answer would be 'no'," Powell said when asked if he would resign if fired by the president. "The law clearly gives me a four-year term, and I fully intend to serve it."
Volatility of Bitcoin and Ethereum
Amid the political tension, Bitcoin (BTC) is demonstrating significant volatility. As of August 26, 2025, its price is $108,901.05, with a market cap of $2.17 trillion. Over the past 24 hours, Bitcoin has declined by 3.42%, and over the last week, by 6.70%. Analysts note that pressure on the Fed is indeed affecting major cryptocurrencies like BTC and ETH, causing increased uncertainty among investors.
Future of Markets Amid Political Uncertainty
The Coincu research team highlights that political pressure on the Fed's independence could adversely affect both traditional and digital markets. Expectations for price stability and interest rates may face challenges, which in turn affects investor sentiment.
The overall findings indicate that political influence over the Federal Reserve may have far-reaching consequences for financial markets. Investors are keenly watching the situation, hoping for stable and predictable monetary conditions.
