Trump could fire Fed Chair Powell over disagreement with his monetary decisions

US President Donald Trump outlined the possibility of firing the Federal Reserve (Fed) Chairman Jerome Powell over disagreement with his decisions regarding interest rates. Some members of the administration, however, advised the president to show restraint in this matter.

The head of the US central bank insists on a cautious approach to shifts in monetary policy amid trade tensions causing uncertainty in the financial markets. In response, Trump said Powell will face political pressure aimed at convincing him to cut borrowing costs. According to Bloomberg experts, dismissing the Fed Chair could have a much more significant impact on the global economy than Trump's previous personnel changes.

US Treasury Secretary Scott Bessent and White House National Economic Council Director Kevin Hassett opposed the idea of discharging Powell before his term ends in May 2026. The officials warned the president of possible economic consequences, Bloomberg sources said.