$ETH The prospect of dismissing a sitting Fed Chair raises significant legal and institutional concerns. While Trump asserts he can remove Powell, the Federal Reserve operates independently, and such a move could undermine its autonomy. Powell, appointed by Trump in 2017 and reappointed by President Biden in 2021, has indicated he intends to serve his full term through May 2026. [2]
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📈 Market and Economic Impact
The public dispute between Trump and Powell has potential ramifications for financial markets and the broader economy. Investors may react to perceived threats to the Federal Reserve's independence, leading to increased volatility. Additionally, concerns about inflation and interest rate policies could influence economic growth and employment.
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🧠 Expert Opinions
Economists and financial experts warn that removing Powell could destabilize markets and erode confidence in U.S. monetary policy. The Federal Reserve's independence is considered crucial for maintaining economic stability and avoiding short-term political pressures.
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