What Happens If Trump Tries to Remove the Fed Chair?
As speculation grows around Donald Trump’s return to the White House, concerns about his potential influence over the Federal Reserve are reigniting.
Senator Elizabeth Warren has cautioned that any attempt by Trump to fire Fed Chair Jerome Powell could trigger market instability and damage the credibility of U.S. financial institutions.
During a recent television appearance, Warren warned that interfering with the independence of the central bank would send shockwaves through global markets. Her remarks follow renewed attacks from Trump, who has criticized Powell for resisting calls to slash interest rates.
Although the legal grounds for removing a sitting Fed chair are unclear, the mere suggestion, Warren argues, could erode investor trust and signal that U.S. monetary policy is at risk of political manipulation. She described such a move as one that would align the U.S. with authoritarian regimes rather than reinforcing its status as a global economic leader.
Trump’s frustration with Powell isn’t new. He’s repeatedly blamed the Fed for slowing growth by keeping rates too high and has made rate cuts a key theme in his economic messaging. Allies like Senator Rick Scott have echoed the sentiment, calling for a leadership shake-up at the Fed to better serve American families.
Some analysts believe Trump’s criticism has deeper motives. Investor Anthony Pompliano has suggested that Trump may be intentionally stirring market volatility to pressure the Fed into action—pointing to recent fluctuations in bond yields as evidence.
With the 2024 election cycle approaching, the debate over the Fed’s autonomy is no longer theoretical. Whether or not Trump could legally remove Powell, the rising tension between the White House and the central bank could become a defining factor for investor sentiment in the months ahead.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
