Friday, 18 July 2025
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Warren warns Trump could fire Fed Chair Powell, disrupt markets
Thursday, 27 March 2025 04:42 WIB | ECONOMY |Amerika

Wednesday brought a stark warning from Senator Elizabeth Warren regarding the potential for President Donald Trump to dismiss Federal Reserve Chair Jerome Powell. In an interview with Bloomberg News on Wednesday, the Massachusetts Democrat expressed concerns that Trump's broad interpretation of his authority to remove officials from independent agencies could lead to significant instability in the US markets.

Warren highlighted the dangers of such actions, suggesting that if the president can remove civil servants and leaders of independent agencies at will, it would result in a concentration of power. She criticized the president's approach as a form of lawlessness that undermines the legal protections intended to ensure the independence of these agencies.

The senator's opposition to Powell's reappointment by President Joe Biden was based on Powell's stance on reducing financial regulations. Despite her opposition, Warren emphasized her support for the independence of the Federal Reserve. She also voiced her backing for other independent bodies like the Federal Trade Commission and inspectors general, all of which have been subject to scrutiny by Trump.

Warren's comments come amid a broader discussion of the president's authority over independent agencies. She contends that the president's actions, as they relate to removing officials from these agencies, are illegal. This assertion points to a potential conflict between the executive's reach and the statutory independence granted to certain government bodies.

The senator's warning underscores the potential ramifications of such presidential actions on the US financial landscape. As the head of the Federal Reserve, Powell's position is crucial in setting monetary policy, and any disruption in leadership could have immediate effects on market stability and economic confidence.

Source: Investing.com

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