Donald Trump

President Donald Trump

Reserve

<ul>
 <li>The US Supreme Court has flagged risks in Trump firing Lisa Cook.</li>
 <li>This comes after the DoJ launched a criminal investigation against Jerome Powell.</li>
 <li>Actions are reportedly linked to rate cuts, which have put the crypto market on edge again.</li>
</ul>
US President Donald Trump is reportedly chasing the ouster of the Federal Reserve Governor. The US Supreme Court has weighed in by flagging risks associated with it. This comes after reports emerged about Trump going after the Fed Chair. For the crypto market, any movement in this context could cause an imbalance in inflation, growth, and thereby volatility.
<h3 class="wp-block-heading" id="h-trump-vs-lisa-cook">Trump Vs. Lisa Cook</h3>
<a href="https://thenewscrypto.com/from-4-to-new-lows-official-trump-trump-tests-market-nerves/" target="_blank" rel="noopener noreferrer nofollow">Donald Trump</a> is looking to fire Lisa Cook before her term ends. However, the US Supreme Court has flagged that such a move could put a dent on the independence of the central bank. Moreover, firing Cook could trigger a real-world economic crisis.
According to a <a href="https://www.reuters.com/business/finance/us-supreme-court-sees-risk-trump-running-roughshod-over-fed-2026-01-22/" target="_blank" rel="noopener noreferrer nofollow">report by Reuters</a>, such an interference by the US President would potentially open the door to removing policymakers without following any prescribed order. Justice Brett Kavanaugh argued with Solicitor General D. John Sauer, saying that the absence of judicial review or any other process could lead to a search-and-destroy mission.
Lisa Cook assumed her position in 2022 under the Biden Administration, with the tenure scheduled to last till 2038.
<h3 class="wp-block-heading" id="h-trump-vs-jerome-powell">Trump Vs. Jerome Powell</h3>
This is not the first time that Donald Trump has gone after someone in the US Federal Reserve. He earlier targeted the Fed Chair Jerome Powell, threatening to launch a criminal investigation via the Department of Justice (DoJ). Powell <a href="https://thenewscrypto.com/powell-says-doj-probe-tied-to-trump-pressure-over-fed-rate-cuts/" target="_blank" rel="noopener noreferrer nofollow">defended his position</a>, citing that it was a tactic to pressure him into cutting rates.
Notably, Jerome Powell <a href="https://thenewscrypto.com/us-fed-chair-jerome-powell-gets-global-support-no-rate-cut-likely/" target="_blank" rel="noopener noreferrer nofollow">gained support</a> from the heads of top banks like the Bank of England, the European Central Bank, and the Bank of Canada.
A case against Lisa Cook is reportedly on the same line. Trump earlier pointed out that he would install someone with the same thought process – hinting that the next hire could cut rates instead of defending them like Powell has done. For Cook, Trump has cited mortgage fraud allegations to make her ouster happen.
<h3 class="wp-block-heading" id="h-what-s-for-crypto-market">What’s For Crypto Market?</h3>
Most of the fuss is over rate cuts. Currently, there is little to no chance that the US Federal Reserve will cut rates. They could stay the same given the central bank is tasked to balance inflation, growth, and the employment rate, among other factors.
A rate cut could accelerate the price surge for cryptocurrencies, but it is also likely to influence the inflation rate, which increased slightly to 2.71% in December 2025. Thereby affecting crypto prices eventually. Moreover, employment rate and job growth rate have sent <a href="https://thenewscrypto.com/u-s-banks-push-congress-to-restrict-stablecoins-and-crypto-data-access/" target="_blank" rel="noopener noreferrer nofollow">mixed signals</a> to convince a rate cut.
Suffice it to say, what happens next in Trump vs Cook and/or Trump vs Powell could carve the movement of crypto prices on the charts.
Highlighted Crypto News Today:
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Trump After Federal Reserve Governor Lisa Cook, Where Does Crypto Market Stand?

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