The crypto market is once again under pressure as former US President Donald Trump reportedly aims to remove Federal Reserve Governor Lisa Cook. This political maneuvering comes at a time when the market is already on edge due to ongoing discussions about interest rate cuts.
The implications of Trump”s actions could have far-reaching effects on the economy and, by extension, the cryptocurrency landscape. The US Supreme Court has flagged potential risks associated with the President”s interference in the central bank”s operations, suggesting that such a move could undermine the institution”s independence and lead to a real economic crisis.
Lisa Cook, who began her term in 2022 and is expected to serve until 2038, has found herself in the crosshairs of Trump”s administration, which is reportedly citing mortgage fraud allegations as grounds for her dismissal. The Supreme Court”s concerns were echoed by Justice Brett Kavanaugh, who warned against the absence of judicial oversight in such matters, highlighting the potential for a chaotic “search-and-destroy mission” against policymakers.
This is not the first time Trump has targeted the Federal Reserve. Previously, he expressed intentions to investigate the current Fed Chair, Jerome Powell, through the Department of Justice. Powell has maintained that such pressure tactics are designed to push him into implementing rate cuts. Notably, he has received backing from leaders of major financial institutions, including the Bank of England and the European Central Bank.
The focus on rate cuts remains a critical issue for the crypto market. Currently, there is minimal likelihood that the Federal Reserve will lower interest rates, as they must balance inflation, economic growth, and employment rates. A rate cut could potentially lead to a surge in cryptocurrency prices, yet it also risks impacting inflation, which saw a slight increase to 2.71% as of December 2025.
The mixed signals regarding employment and job growth further complicate the Fed”s decision-making process regarding rate adjustments. As the situation unfolds with Trump versus Cook and Powell, the outcomes could significantly influence the trajectory of crypto prices, making it essential for investors to stay informed about these developments.
