SAEDNEWS: President Trump’s volatile rhetoric and threats to dismiss Federal Reserve Chair Jerome Powell – citing a $2.5 billion renovation and interest‑rate frustrations – have sparked fresh concern about political meddling in US monetary policy, unsettling both markets and party moderates.
According to Saed News, President Donald Trump has once again unleashed dramatic criticism of Federal Reserve Chair Jerome Powell, alleging mismanagement of a costly $2.5 billion restoration of the central bank’s headquarters and demanding swifter interest‑rate cuts. Despite initially suggesting Powell could be removed, Trump later softened that stance, terming an outright firing “highly unlikely” unless serious wrongdoing is uncovered .
Still, this remark follows a blunt pushback from his inner circle. Treasury Secretary Scott Bessent, along with several Republican senators, condemned the threats, citing risks to market stability and the constitutionally anchored independence of the Fed. Markets responded with caution: an initial dip in equities and dollar values was swiftly counterbalanced when Trump walked back the firing remarks .
Legal experts caution that any removal for policy disagreement would violate precedent—particularly the Supreme Court’s Humphrey’s Executor doctrine—which shields Fed governors from dismissal barring misconduct . Still, the White House has launched a probe into renovation cost overruns, potentially as foundation for a “for‑cause” dismissal .
Observers warn the mere specter of such political intrusion could corrode trust in US monetary governance. Analysts note that even talk of politicizing the Fed’s leadership may de-anchor inflation expectations, drive up bond yields, and erode the dollar’s reserve currency status . As Trump’s presidency unfolds, his dynamic yet unpredictable campaign against Powell may prove as destabilizing as any concrete action.
