Federal Reserve Chairman Jerome Powell is once again in the crosshairs of President Donald Trump, who is publicly threatening to fire him unless the central bank cuts interest rates.

A new wave of criticism, directed via Truth Social and reinforced in statements to reporters, raises fresh concerns about the independence of the U.S. Federal Reserve and the potential consequences for markets and monetary policy. Trump's frustration with Powell stems from the central bank's reluctance to lower interest rates to offset the economic pressure caused by the tariff policies championed by the president himself.

While Powell's term does not end until next year, Trump's statements have reignited the debate over whether the president can legally fire the Federal Reserve Chairman mid-term—and what such a move would mean for the credibility of U.S. monetary policy.

"It would be extremely damaging to the credibility of the United States," said Tom Bruce, a macro investment strategist at Tangelood for comprehensive wealth management.