Trump declared Cook’s “immediate” dismissal, despite legal experts stressing he lacks the authority. Cook, the first Black woman on the Fed board, has vowed to fight back in court. If Trump prevails, he would secure majority control of the Fed’s board — a move critics warn could end the tradition of central bank independence that underpins confidence in U.S. markets and the dollar. Markets reacted quickly: bond yields rose, and the dollar weakened. Economists compared Trump’s tactics to leaders in countries like Turkey, where political interference in monetary policy severely undermined trust in economic management. The fear is that the U.S. could face similar credibility issues. For crypto, the impact could be twofold. In the short term, Trump’s push for lower interest rates and a weaker dollar might drive more investment into riskier assets like Bitcoin and Ethereum , as investors search for higher returns. But over the longer term, any erosion of trust in U.S. institutions and the dollar’s role as the world’s reserve currency could accelerate interest in decentralized alternatives . If faith in the Fed falters, crypto could be seen as a hedge against political control of monetary policy.
