Trump Says He'd Love to Fire Fed Chair Powell

3 hours ago7 min read1 comments

In a striking escalation of his long-running campaign against the nation's independent central bank, former President Donald Trump told attendees at the U. S.-Saudi Investment Forum on Wednesday that he would 'love to fire' Federal Reserve Chair Jerome Powell, whom he labeled 'grossly incompetent. ' This public flogging, while jarring, is not an isolated incident but rather the latest salvo in a deeply personal and politically charged feud that threatens to unravel decades of established monetary policy precedent.The relationship between Trump and Powell has been fraught since the president's first term, when he repeatedly assailed the Fed chair for not slashing interest rates to zero, but the current rhetoric carries a new, more institutional threat. Trump's assertion that he could justify Powell's removal 'for cause'—a vague reference to cost overruns in the Fed's headquarters renovation—signals a potential legal and constitutional battle over the limits of presidential power regarding the Federal Reserve, an institution deliberately designed to be insulated from direct political pressure.This comes amidst a conspicuously public search for Powell's successor, led by Treasury Secretary Scott Bessent, who himself received a teasing yet pointed threat from Trump to 'get it fixed fast' or face being fired. The spectacle places Bessent in an unenviable position, managing a high-stakes selection process under the public glare of his boss's discontent, with five finalists reportedly in consideration.For markets, this creates a fog of uncertainty; investors rely on Fed predictability, and the prospect of a chair being ousted over political disagreements rather than policy failures introduces a volatile new risk premium. Historically, presidents from both parties have observed a tradition of respecting the Fed's operational independence, even when privately disagreeing with its decisions, understanding that the credibility of the dollar and the stability of the global financial system depend on it.Trump's willingness to shatter this norm echoes past conflicts, such as President Lyndon B. Johnson's infamous physical confrontation with Fed Chair William McChesney Martin over rate hikes, but it ventures into unprecedented territory by openly discussing a premeditated dismissal.The immediate consequence is a chilling effect on the Fed's Governing Board, whose members may feel pressured to align their interest rate decisions with the White House's short-term political desires rather than long-term economic data, potentially fueling inflation or creating asset bubbles. Furthermore, this public rift complicates international economic coordination, as global counterparts at the ECB and Bank of England must now question whether their agreements are with an independent Fed or one increasingly subservient to executive branch whim. With a decision on the next Fed chair expected before year's end, the financial world watches with acute anxiety, understanding that the outcome will determine not just the direction of interest rates, but the very integrity of America's central banking framework.

#Trump

#Jerome Powell

#Federal Reserve

#interest rates

#firing

#central bank independence

#featured

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