Political pressure on the US Federal Reserve (Fed) is becoming a global issue. On Tuesday, the world’s 11 most important central banks stood behind Fed Chair Jerome Powell and warned that threats to the Fed’s independence could undermine financial and economic stability around the world. According to experts, this situation could have a direct impact on the cryptocurrency market—increasing volatility but also strengthening long-term interest in Bitcoin and gold.
In a joint statement, the governors said they “stand in full solidarity with the Federal Reserve System and its Chairman Jerome H. Powell” and stressed that the independence of central banks is a key pillar of macroeconomic stability.
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Signatories include European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey, Bank of Canada Governor Tiff Macklem, and representatives of the central banks of Sweden, Denmark, Switzerland, Norway, Australia, South Korea, and Brazil. Senior representatives of the Bank for International Settlements (BIS) have also joined.
The tension stems from the launch of a criminal investigation into Jerome Powell over the $2.5 billion renovation of the Fed’s headquarters. This move has further exacerbated relations between the central bank and the Trump administration, which has long criticized Powell’s approach to interest rates.
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Trump prepares his own people to head the Fed
President Trump is already laying the groundwork for Powell’s possible replacement. Several of his loyal allies who openly support lowering interest rates are emerging as potential successors.
Kevin Hassett, Trump’s chief economic advisor, is considered the frontrunner. Although he claims that the president’s personal views would not directly influence the Fed, reality shows that the administration is already strengthening its influence.
Last year, Stephen Miran, a close ally of Trump, was appointed to the Fed’s Board of Governors. At his very first meeting in December, he pushed for a 0.5 percentage point rate cut – a clear signal of the dovish stance preferred by Trump’s people.
This creates new tension for the cryptocurrency market – the politicization of monetary policy may cause short-term turbulence, but at the same time it may strengthen the narrative of Bitcoin as an alternative to the traditional financial system. At a time when confidence in institutions is shaken, this may play into the hands of cryptocurrencies.
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Sources:
https://www.ecb.europa.eu/press/pr/date/2026/html/ecb.pr260113~ec4630b9fa.en.html
https://www.federalreserve.gov/newsevents/speech/powell20260111a.htm
https://www.nytimes.com/2026/01/11/us/politics/jerome-powell-fed-inquiry-trump.html
