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Senator ELIZABETH WARREN of Massachusetts has issued a stark warning, stating that U.S. markets could face a catastrophic meltdown if Federal Reserve Chair JEROME POWELL is removed from his position by President DONALD TRUMP.
Speaking in a recent CNBC Squawk Box interview, Senator Warren emphasized that such an action would have disastrous consequences for the stability of the U.S. economy.
“If Chairman Powell can be fired by the president of the United States, it would crash the markets in the United States,” said Warren. “The infrastructure that keeps this stock market strong—and, by extension, a significant part of both the U.S. and global economies—is the idea that critical decisions are made independently of political influence. If interest rates or the New York Stock Exchange become subject to a president’s whims, we risk resembling any other two-bit dictatorship where investments are at the mercy of a leader’s personal whims.”
Recent reports from Reuters suggest that President Trump is “studying” the possibility of firing Powell, who has served as Fed Chair since 2018. Although appointed by Trump, Powell has faced increasing tension with the president over differing views on interest rate policies.
While Trump has pushed for immediate rate cuts to stimulate the economy, Powell has advocated for a more cautious approach, emphasizing the need to maintain steady rates to ensure long-term economic stability.
For more details, visit the original sources: CNBC Interview, Reuters Report.
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