How Bitcoin price will fare amid Trump’s ‘Erdoganisation of Fed’

Core Viewpoint - The article discusses the potential political pressure on the Federal Reserve by the Trump administration, drawing parallels to Turkey's economic situation under President Erdoğan, where similar pressures led to significant monetary policy changes and economic instability [1][2]. Group 1: Federal Reserve and Political Pressure - Federal Reserve Chair Jerome Powell revealed that the Department of Justice had subpoenaed the central bank, threatening him with a criminal indictment to influence interest rate decisions [1]. - Trump has criticized the Fed for maintaining high interest rates, claiming it negatively impacts housing affordability and economic growth [1]. Group 2: Comparison with Turkey - The situation in the U.S. is likened to Turkey, where President Erdoğan has exerted political pressure on the central bank, leading to detrimental economic outcomes [2]. - André Dragosch warns of a potential "Erdoganisation of the Fed," indicating that increased political influence could affect U.S. monetary policy [2]. Group 3: Turkey's Economic Instability - Erdoğan's conflicts with Turkey's central bank began in July 2019, leading to the dismissal of central bank governor Murat Çetinkaya for resisting rate cuts, which resulted in a sell-off of the lira [3]. - In March 2021, Erdoğan dismissed reform-oriented governor Naci Ağbal and appointed Şahap Kavcıoğlu, causing the lira to plunge by up to 15% in a single day [4]. - From mid-2018 to 2021, the lira lost approximately 75-80% of its value against the dollar, leading to a cultural phenomenon where the depreciation was humorously compared to various objects [5]. Group 4: Impact on Cryptocurrency and Wealth Building - The collapse of the lira led to a surge in domestic trading volumes and interest in cryptocurrencies as Turks sought to protect their purchasing power [6]. - Turkey emerged as one of the highest adoption markets for cryptocurrency during this period, as traditional wealth-building avenues failed [6].