$ETH According to a Wall Street Journal report, former U.S. President Trump has been secretly working for months to remove Federal Reserve Chairman Jerome Powell. Trump is said to have already lined up a potential replacement — and is determined to take action before Powell’s term ends.

✔ Behind Closed Doors: Trump’s Secret Plan

◾ Trump has been meeting privately since late 2023 to discuss firing Powell

◾ He even consulted former Fed Governor Kevin Warsh about replacing Powell

◾ Warsh advised against firing Powell, but discussions continued until March 2024

◾ Trump claimed he has the power to oust Powell anytime: “If I wanted him out, he would be out very quickly”

✔ Why Trump Wants Powell Out

◾ Trump has expressed frustration that Powell didn’t cut interest rates faster

◾ He accuses Powell of “playing politics” ahead of the 2024 election

◾ Trump posted on Truth Social: “Powell’s ouster can’t come fast enough!”

✔ Can Trump Actually Fire Powell?

◾ Legally, the Fed Chair can only be removed for “good cause”, such as misconduct

◾ No president has attempted to fire a Fed Chair over policy disagreements

◾ If Trump proceeds, the case may reach the Supreme Court

◾ This legal challenge could shake financial markets and undermine U.S. credibility

✔ Inside the White House: Split Opinions

◾ Treasury Secretary Scott Bessent is actively opposing the plan

◾ Bessent believes firing Powell would bring economic instability

◾ He has called the Fed’s independence a “jewel box” that should be preserved

◾ The White House may begin reviewing potential candidates for Fed Chair by Fall 2025

✔ What’s at Stake for the Markets?

◾ Investors may worry that removing Powell could undermine the Fed’s independence

◾ This could lead to rising long-term bond yields and market volatility

◾ Experts warn it could trigger a longer recession and loss of confidence

“This could seriously destabilize markets,” – Citigroup's Chief Economist

✔ Will Powell Fight Back?