Former Federal Reserve Chair Jerome Powell has issued a stark warning about the potential erosion of the Fed's credibility if presidents can dismiss officials over policy disagreements. Powell, who recently concluded his term on May 15, 2026, emphasized that the Federal Reserve Act permits the removal of governors only "for cause," which should not include policy disputes. His comments come amid President Trump's criticisms of Fed leadership and suggestions of reshaping it to align more closely with the White House. Powell's successor, Kevin Warsh, was confirmed as the new Fed chair on May 13, 2026. Despite the transition, Powell intends to remain on the Board until January 2028 to safeguard the Fed's independence. This stance highlights ongoing concerns about political interference in central bank operations, which could destabilize financial markets. The independence of the Fed is crucial for maintaining predictable monetary policy, which is vital for crypto investors who rely on stable interest rate and inflation expectations.