According to The Kobeissi Letter, Fed Chair Jerome Powell publicly countered President Trump's criticism, saying the threat of criminal charges is a consequence of the Fed setting rates based on its assessment rather than the President's preferences; source: The Kobeissi Letter on X, Jan 12, 2026. According to The Kobeissi Letter, US stock futures fell over 0.5% immediately after the remark, and the Fed is expected to pause rate cuts again on January 28, underscoring near-term event risk for rates-sensitive assets; source: The Kobeissi Letter on X, Jan 12, 2026. Crypto traders should note that macro shocks and equity selloffs have historically coincided with higher crypto–equity correlation, implying potential volatility spillover to BTC and ETH during policy uncertainty; source: International Monetary Fund, Crypto Prices Move More in Sync with Stocks, 2022.

According to @sentimenttrader, the ongoing conflict between Donald Trump and Federal Reserve Chair Jerome Powell is escalating, with Trump increasing public pressure for immediate interest rate cuts and even threatening Powell's position. While direct removal of Powell is highly unlikely due to institutional protections and potential damage to Fed credibility (source: @sentimenttrader), this political tension is creating market uncertainty. For cryptocurrency traders, heightened volatility in USD rates can lead to increased price swings in major digital assets like BTC and ETH, as investors often seek alternative stores of value during periods of monetary policy instability (source: Bloomberg). Crypto market participants should closely monitor Fed policy signals and political developments, as any shift in rate expectations could act as a catalyst for significant crypto price movement.