13,672,541,920 USD President > President of the United States "Trump Replaces Powell" refers to the intensifying conflict between President Trump and Federal Reserve Chairman Powell in April 2025, where Trump threatened to replace Powell. The specifics are as follows:

Conflict Background

• Policy Differences: Trump advocates for the Federal Reserve to cut interest rates to alleviate the impact of his tariff policies on the economy, reduce government financing costs, and boost domestic demand. However, Powell insists on the Federal Reserve's independence and believes that policies should be determined based on economic data, emphasizing the need to address inflation in light of the complex economic situation brought about by tariff policies, and is not in a hurry to adjust the policy stance.

• Past Conflicts: Powell was nominated by Trump as Federal Reserve Chairman in 2017. During Trump's first term, he expressed dissatisfaction with Powell for the Federal Reserve's interest rate hikes, repeatedly urged for rate cuts, and threatened to fire him. Powell was re-nominated by Biden in 2022, serving until May 2026. After Trump began his second term, the conflict between the two escalated again.

Event Progression

• Public Criticism: On April 17, 2025, Trump posted on social media that Powell's actions are "always too late and wrong," and that he should have cut rates long ago like the European Central Bank, stating, "The sooner he steps down, the better." In an interview at the White House, he remarked, "If I want him out, he will be out quickly," accusing Powell of incompetence and playing politics.

• Internal Discussions: According to media reports, Trump had been privately discussing the possibility of firing Powell with his aides for months, and even met with former Federal Reserve Governor Kevin Walsh at Mar-a-Lago to discuss Walsh taking over as Federal Reserve Chairman. However, Walsh, Treasury Secretary Mnuchin, and others opposed firing Powell, believing that such a move would undermine financial market stability.

Possible Impacts

• Legal Action: Under U.S. law, the president cannot arbitrarily fire members of the Federal Reserve Board unless there is misconduct or malfeasance. If Trump were to fire Powell, it would inevitably lead to legal action.

• Market Turmoil: Some Democrats and market participants warned that if Powell were removed, it could trigger severe turmoil in the U.S. financial markets, potentially leading to a stock market crash and seriously undermining the independence of the Federal Reserve.