Consider firing Fed Chair Powell due to refusal to lower interest rates, could backfire on Trump

From Yahoo Finance: 2025-04-22 14:43:00

President Trump is considering firing Fed Chair Jerome Powell due to Powell’s refusal to lower interest rates. Trump’s tariffs have prevented rate cuts, causing inflation to rise. Firing Powell could worsen the situation, as markets fear Trump’s interference with the Fed. The move could harm Trump’s economic agenda.

If Trump fires Powell, it could lead to a market upheaval, lawsuits, and Senate approval for a replacement. The Fed’s rate-setting committee may resist Trump’s demands for rate cuts. Investors are uncertain about Trump’s commitment to market stability amid economic turmoil. The outcome remains uncertain.

Read more: How firing Fed Chair Powell would backfire on Trump