We have major breaking news tonight that could redefine the future of American monetary policy and shake global financial markets for months — if not years — to come.
Multiple sources have confirmed that Donald Trump is seriously considering firing Federal Reserve Chair Jerome Powell, and he may act soon. This isn’t just trial balloon territory anymore. According to Business Insider, a senior White House official stated that Trump “asked lawmakers how they felt about firing the Fed Chair. They expressed approval… The President indicated he likely will soon.”
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Then came the second hammer. The New York Times reported that Trump showed off a draft letter firing Powell during a private Oval Office meeting with House Republicans earlier this week. That meeting, ostensibly about crypto legislation, quickly turned to one of Trump’s favorite grievances: Powell — the very man he appointed as Fed Chair back in 2017.
Fox News has since corroborated the story, with one source saying bluntly: “He’s going to do it.”
“When?”
“Soon.”
This moment could mark a historic inflection point for the independence of the Federal Reserve — a principle that has underpinned U.S. economic credibility for over a century. For now, markets are holding their breath.
Can He Actually Fire Powell? The Legal Gray Zone
The answer: maybe.
Trump cannot technically fire Powell from the Board of Governors without “cause” — but whether he can remove Powell as Chair of the Board (a separate, 4-year appointment) is much murkier.
Daniel Tarullo, a Harvard Law professor and former Fed Governor, told the Harvard Gazette the issue is legally ambiguous. “There are two questions,” he said:
Does the four-year chair term enjoy the same ‘for cause’ protection as a Board seat?
And even if it does, does the president have constitutional authority to override that?
This is where recent Supreme Court trends matter. The 2020 Seila Law decision already chipped away at long-standing limits on presidential removal powers. The current conservative majority could go further — unless they choose to carve out an exception for the Fed, which some justices (notably Roberts, Alito, and Kavanaugh) have hinted might be special.
Even if Trump succeeds, the market fallout could be fast and brutal. Tarullo warns that “any action by any administration to try to remove the chair… is ultimately self-defeating.”
Why?
Because markets assume a fired chair means political control over monetary policy — typically translating into looser policy, higher inflation, and soaring long-term interest rates.
Investors value the Fed’s independence not out of tradition but because it stabilizes expectations. Undermine that independence, and the cost of government borrowing — especially on the 10-year Treasury — could rise sharply.
And that’s the irony: Trump may want Powell out to stimulate growth, but the move could spook bond markets so badly that it triggers the opposite — higher rates, tighter conditions, and weaker investment.
So What Happens Now?
Jerome Powell’s term as Fed Chair ends in early 2026. Trump could simply wait and install a loyalist. That would be the safe play — but Trump has never been known for strategic patience.
According to insiders, he doesn’t want to wait.
If he acts now, expect lawsuits. Expect headlines. And expect market volatility. Because this isn’t just about Powell — it’s about whether the last major bastion of U.S. economic independence can survive in the age of hyper-politicization.
The Bigger Picture
The stakes are enormous. If Trump follows through and removes Powell, he sets a precedent: that Fed chairs serve not four-year terms, but at the pleasure of the president.
That’s a tectonic shift in how U.S. monetary policy works. And if markets begin to price in a politically subservient central bank, the ripple effects could extend far beyond Wall Street — to inflation expectations, foreign investment, and America’s long-term economic stability.
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