French Finance Minister Cautions Against Dismissing Jerome Powell
French Finance Minister Eric Lombard has issued a strong warning regarding the possible removal of U.S. Federal Reserve Chair Jerome Powell. Speaking to La Tribune Dimanche, Lombard emphasized that firing Powell could severely damage the credibility of the U.S. dollar and threaten the stability of the American economy.
The warning comes as tensions escalate between former President Donald Trump and Powell. Trump has consistently criticized Powell for not cutting interest rates and has hinted at the possibility of ousting him before his term ends in 2026. White House adviser Kevin Hassett recently acknowledged that Trump is actively exploring legal options to make that happen.
Lombard warned that such action would be seen as political interference in monetary policy, potentially leading to increased borrowing costs and prolonged economic instability. “It would erode global confidence in the U.S. dollar,” he stated, noting that it might prompt urgent international dialogue to mitigate financial risks.
Market analysts have echoed these concerns, pointing to heightened uncertainty and fears that Powell’s dismissal could spark market volatility reminiscent of previous trade war disruptions.
Lombard’s comments reflect a broader international unease about political influence over central banks and the potential consequences for global economic stability.