Senator Elizabeth Warren warns that if President Trump fires Federal Reserve Chairman Jerome Powell, it could trigger a financial collapse by undermining confidence in the markets. She argues that the president does not have the legal authority to do so and that it would weaken the financial infrastructure of the U.S., as the independence of the Fed is crucial for global economic stability.
President Trump has publicly criticized Powell for not lowering interest rates, believing that lower rates would boost asset prices. Senator Rick Scott has also called for a restructuring of the Fed's leadership.
There has been speculation that the Trump administration may be trying to push for lower rates, even destabilizing the markets. The debate over the independence of the Fed and interest rates remains an important issue with global economic implications. Essentially, the central concern is that political interference in monetary policy could damage confidence in the markets and economic stability.