Donald Trump is once again ramping up pressure on Federal Reserve Chair Jerome Powell — and this time he is not bluffing. In a move that could shock global financial markets, the White House has confirmed that firing Powell is now being seriously considered.
Kevin Hassett, head of the National Economic Council, told reporters:
"The president and his team will continue to explore this issue."
This comes right after Trump's fiery remarks:
"I am not happy with him. I made that clear to him, and if I want him fired, he will be out of there very quickly, believe me."
Let's not forget — Trump nominated Powell himself. But since then, Powell has raised interest rates, defied Trump's economic pressure, and warned that trade wars could harm the U.S. economy. None of this has pleased 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" — for example, for misconduct or failure to perform duties. But Trump's legal team is actively exploring these boundaries. A case could soon rewrite the president's powers regarding dismissal in the Supreme Court. If it favors Trump, Powell's job may be at risk.
What is at stake?
According to insiders, Treasury Secretary Scott Bessent has repeatedly warned the White House that firing Powell could lead to major chaos in the markets. But Trump seems to disregard this. In private meetings, including one with former Fed Governor Kevin Warsh, Trump considered replacing Powell — despite objections.
Why this matters for Binance traders
This political drama is not just headlines — it could directly impact decisions on interest rates, market volatility, and investor sentiment. Traders should pay close attention:
The independence of the Fed is under scrutiny
The strength of the dollar and interest rate cuts are uncertain
Market volatility could rise if Powell is fired
Trump's growing frustration with Powell is more than just political theater — it's a looming risk for the global economy and crypto markets. #TrumpVsPowell