US President Donald Trump is considering firing Fed Chair Jerome Powell, a topic that has been discussed in a recent meeting with Republican lawmakers.
Proposal to Dismiss
According to a senior White House official, Donald Trump mentioned the possibility of firing Jerome Powell during a meeting with Republican members of Congress. Most attendees supported this move, but a final decision has yet to be made.
Response to Powell's Criticism
President Trump expressed dissatisfaction with Powell's actions and criticized the costly renovations at the Fed's Washington headquarters, stating, "This is a disgrace. This is a government building, not a palace."
Consequences of Dismissal
The dismissal of Powell could trigger sharp market fluctuations and reignite discussions about the limits of presidential power over independent institutions in the US. Expert Jim Bianco opined that such a dismissal could lead to a sell-off in the bond market and a sharp rise in interest rates.
Thus, the potential dismissal of Jerome Powell by President Trump poses a threat to financial market stability and raises questions about the role of presidential authority in managing the Federal Reserve.
