Fed Chairman Jerome Powell has recently faced a variety of challenges and criticisms. Not only has he been criticized by the president, but he has also been accused of perjury by Florida House Republican Anna Luna. Recently, Wyoming Senator Cynthia Lummis even directly called for Powell to leave the Fed.

Powell's divergence with the president mainly stems from interest rate policy. As the inflation rate remains above the Fed's 2% target, the president hopes for interest rate hikes, while Powell takes a cautious stance. The president believes that maintaining low interest rates will increase the government's debt costs, as paying off the current debt of $36.67 trillion requires substantial interest payments.

However, Loomis's dissatisfaction with Powell is not limited to interest rate issues. She has repeatedly accused Powell of supporting policies detrimental to the cryptocurrency industry during the current administration, referring to it as "Operation Choke Point 2.0." As one of the U.S. financial regulatory agencies, the Fed has consistently considered "reputational risk" factors when reviewing banking operations to ensure banks do not engage in activities that could be viewed as negative.

Loomis claimed that the Fed had warned banks that collaborating with cryptocurrency companies would increase reputational risks, a position that led many cryptocurrency firms to be forced to shut down. However, with the new government taking a more friendly stance towards cryptocurrencies, the Fed has recently adjusted its related position.

This series of events highlights the complex challenges the Fed faces in formulating monetary policy and regulating financial institutions, as well as how its decisions affect various stakeholders and emerging industries. Powell's situation reflects the difficulties in balancing economic growth, inflation control, and financial innovation.