US President Donald Trump has reportedly polled House Republicans about firing Federal Reserve Chair Jerome Powell, sparking concerns that the move could send US interest rates soaring. A Trump-led decision to fire Powell would be a significant mistake, as it would have severe consequences for American businesses and households.
Trump’s frustration with Powell has grown significantly, and his attacks on the Fed chairman have escalated. He nicknamed Powell “Too Late” due to the Fed’s perceived failure to recognize accelerating inflation in 2021. Trump also argued that the Fed had “cost the USA a fortune” by not lowering rates. Recently, he targeted Powell over the cost of renovating the Fed’s headquarters.
However, firing Powell would have devastating effects on the economy. A change in leadership at the Fed could spook markets and hurt American businesses and households. The move would also increase US interest rates at a time when Trump wants to see them lowered, exacerbating economic challenges already facing the country.
Source: https://www.marketwatch.com/story/is-trump-ready-for-interest-rates-to-soar-if-he-fires-jerome-powell-7aa2e33e