President Trump's threats to fire Federal Reserve Chair Jerome Powell could have severe consequences for the US economy and global markets. Despite the low likelihood of Trump actually removing Powell, investors have grown numb to the ongoing admonishment. Experts warn that firing Powell could lead to market chaos, higher borrowing costs, and a loss of Fed independence. The potential fallout includes higher long-term yields, a weakened dollar, and destabilization of the US economy. Trump's attacks on Powell could erode the Fed's credibility and hinder its ability to manage inflation and stimulate the economy effectively.
Source: https://www.cnn.com/2025/07/18/economy/markets-trump-powell