Warren Warns of Market Turmoil if Trump Can Fire Fed Chair Powell

Senator Elizabeth Warren, D-Mass., expressed grave concerns regarding the stability of U.S. markets during a recent appearance at the New York Stock Exchange. She cautioned that President Donald Trump should never be allowed to fire Federal Reserve Chairman Jerome Powell. If he does, the fallout might be catastrophic and might even trigger a nationwide market crash. The senator’s remarks are amid a growing battle between the administration and the Federal Reserve.

Warren originally dropped this bombshell on Thursday, during an appearance on CNBC’s “Squawk on the Street.” This discussion followed Trump’s earlier outburst, in which he lamented that Powell’s “termination cannot come fast enough.” According to Warren, allowing a president to terminate key economic leaders for personal reasons would undermine the foundational principles of the U.S. economy.

Senator Warren made it very clear that if the president of the United States fires Chairman Powell, that that will put a shock in the markets from coast to coast. The stakes are stratospheric. She acknowledged the need to insulate economic governance from political pressures. She argued that the “infrastructure” propping up the inflated stock market rests on the ability to make large economic calculations without fear of political interference.

Warren concluded by saying, “If we allow this to happen we’re going to find ourselves becoming like any other two-bit dictatorship around the world. We can’t allow that to happen. The senator’s influence within the Senate stems largely from his position as ranking member on the Senate Banking Committee. He is known to openly feud with Powell on regulatory actions and interest rate hikes. Her recent statements highlight her deeply held fears about the increased risk of political influence on economic decision making.

The political impact of what Warren said goes far beyond talk. She added the certainty of all global markets in the present depends on one firm conviction. This myth suggests that key economic levers can operate independent of political influence.