Jerome Powell, Chairman of the U.S. Federal Reserve, faces renewed threats of dismissal, raising concerns in financial markets.
Potential Dismissal of Powell
Jerome Powell could be dismissed as reported by Congress Republican member Anna Paulina. The dismissal is being discussed in the context of potential actions by former President Donald Trump, which is supported by some Republicans.
Market Reactions
Financial markets remain under pressure as the dismissal of a Fed chair is a legally untested move that could have serious consequences. It may undermine confidence in the institution, causing investor anxiety. Donald Trump stated, "I talked to them about the concept of firing him. I said, 'What do you think?' Almost all of them said I should. But I'm more conservative than they are."
Market Volatility and Historical Parallels
A threat to Fed leadership could result in spikes in market volatility, as seen during Nixon's presidency. Data shows that such threats lead to significant fluctuations in stock, bond, and crypto markets. For instance, as of July 17, 2025, Bitcoin (BTC) is trading at $119,051.50 with a market share of 62.21%.
Jerome Powell's potential dismissal poses a threat to financial stability and raises questions about the future of U.S. economic policy.
