Why Trump Is Threatening to Oust Fed Chair Jerome Powell

After weeks of market volatility, Trump revives attacks on Powell—but his advisers fear a financial meltdown if he acts.

The Chicago Federal Reserve. Photo by Joshua Woroniecki on Unsplash

President Trump escalated his war of words with Federal Reserve Chair Jerome Powell this week.

The President accused him of “playing politics” and warning, “If I want him out, he’ll be out of there real fast” —comments that raised questions about the Fed’s independence.

Advisers Urge Caution

Despite the rhetoric, officials, according to the New York Times, say Trump has so far held back from acting. Economic advisers have reportedly warned that removing Powell could rattle financial markets already reacting to recent volatility, including rising Treasury yields and global stock swings.

Fed Holds Steady as Pressure Mounts

While central banks abroad are preparing to cut interest rates, the Fed has held steady. Powell recently reaffirmed the Fed’s commitment to price stability and signaled no immediate rate change—frustrating White House officials hoping for policy relief.

Executive Order Adds Fuel

Trump also signed an executive order that could increase presidential control over independent agencies, including the Fed. Supporters say it strengthens accountability; critics warn it could undermine institutional autonomy.

Trump’s renewed criticism of Fed Chair Jerome Powell isn’t just posturing—it could trigger a constitutional clash, rattle already-volatile markets, and reshape how future presidents treat independent institutions.

In today’s Pro Brief, we break down what’s really at stake if Trump moves to fire Powell:

• The Fed insider Trump is reportedly eyeing as a replacement

• The legal firewall around Powell’s position—and how thin it may be

• What Chief Justice Roberts has to do with all this

• How markets are likely to react if the Fed’s independence is shaken

• What the new executive order means for agencies like the Fed, FTC, and SEC

🧠 If you care about rule of law, market stability, or executive power—this is one of the most important tests yet.

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