On April 23, 2025, BlockBeats reported that U.S. President Trump recently made public criticisms of Federal Reserve Chairman Powell, sparking speculation about the possibility of firing the central bank leader. However, even if Trump were to take this legally controversial action, he might find it difficult to push monetary policy in the direction he desires.
Multiple economists believe that even if Trump were to dismiss Powell, he might not achieve his goal of lowering interest rates. Paul Ashworth, Chief North America Economist at Capital Economics, pointed out in a report that firing Powell might only be the beginning of the deterioration of the Federal Reserve's independence. If Trump is determined to lower interest rates, he may also need to dismiss the other six members of the Federal Reserve Board. However, this action is likely to provoke more severe market turbulence, leading to a depreciation of the dollar and a rise in long-term U.S. Treasury bond yields.
Powell is not only the chairman of the Federal Reserve Board but also serves as the chairman of the Federal Open Market Committee (FOMC), which sets interest rate policy. Ashworth noted that while FOMC members usually choose the Board chairman appointed by the president to lead, they also have the authority to go against Trump's wishes and select someone else to head the interest rate-setting committee.
On Monday, Trump referred to Powell as a 'big loser' on social media, a remark that momentarily shook financial markets. White House economic advisor Kevin Hassett stated last week that the president and his team were considering removing Powell from his position. However, on Tuesday, Trump backtracked, saying he had 'no intention' of firing Powell.
