Donald Trump is once again turning up the heat on Federal Reserve Chair Jerome Powell — and this time, he’s not bluffing. In a move that could send shockwaves through global financial markets, the White House has confirmed that firing Powell is now seriously on the table.
Kevin Hassett, head of the National Economic Council, told reporters:
“The president and his team will continue to study that matter.”
That comes just after Trump’s fiery remarks:
“I’m not happy with him. I let him know it and if I want him out, he’ll be out of there real fast, believe me.”
Let’s not forget — Trump nominated Powell himself. But since then, Powell has hiked interest rates, pushed back against Trump’s economic pressure, and warned that trade wars could damage the U.S. economy. None of that sat well with Trump, who believes the Fed should have cut rates long ago.
Can Trump Legally Fire Powell?
Not so fast. Federal Reserve governors serve 14-year terms and can only be removed “for cause” — like misconduct or failure. But Trump’s legal team is actively testing those limits. A Supreme Court case could soon redefine a president’s firing powers. If it swings Trump’s way, Powell’s job could hang in the balance.
What’s at Stake?
According to insiders, Treasury Secretary Scott Bessent has repeatedly warned the White House that firing Powell could trigger major market chaos. But Trump appears undeterred. In private meetings, including one with former Fed governor Kevin Warsh, Trump explored Powell’s replacement — despite pushback.
Why It Matters for Binance Traders
This political drama isn’t just headlines — it could directly impact interest rate decisions, market volatility, and investor sentiment. Traders should watch closely:
Fed independence is being tested
USD strength and rate cuts are uncertain
Market volatility may spike if Powell is removed
The Bottom Line:
Trump’s growing frustration with Powell is more than political theatre — it’s a looming risk factor for the global economy and crypto markets alike. Buckle up.
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