#TrumpVsPowell Latest developments in the cryptocurrency market and global market for the latest global developments
Senator Elizabeth Warren warned that if Trump removes Jerome Powell, the Chairman of the Federal Reserve, the American market will collapse
Because this means that politics is controlling the economy, which will shake the confidence of investors who believe that the Fed should remain independent.
Trump is upset with Powell because he refuses to lower the interest rate, which is against Trump's wishes as he believes that reducing the interest rate will help the market recover, especially in light of the slowdown caused by the trade war and economic pressures.
But Warren believes that the president does not have the legal authority to remove him, and any political interference in this way will make investors doubt the stability of the American market and start selling and withdrawing their investments, which means a risk of a global financial collapse.
Also, if the interest rate becomes a tool in the hands of presidents, the market will lose its credibility, and at that point, America will resemble unstable regimes.
What fueled the fire is that Trump repeated his desire to remove Powell on "Truth Social," and several other senators supported him, saying that we need to change the leadership of the Fed completely.
The market is currently in a very sensitive position, and any uncalculated move could ignite the situation.
