Another Horror May Be Unfolding as Trump’s Threat to Fire Jerome Powell Sparks Economic & Political Turmoil.

Another Horror May Be Unfolding as Trump’s Threat to Fire Jerome Powell Sparks Economic & Political Turmoil.

Per media reports as it trends, see the video below.

President Donald Trump has escalated his criticism of Federal Reserve Chair Jerome Powell, stating on his social media post that Powell’s “termination cannot come fast enough.”

This comes after Powell warned about the economic consequences of Trump’s tariff policies, which he said could lead to higher inflation and slower growth.

Trump’s remarks have raised concerns about the independence of the Federal Reserve and its role in stabilizing the U.S. economy.

Many critics, as seen on various social media platforms, argue that Trump’s comments undermine the Federal Reserve’s independence, a cornerstone of its credibility.

Economists warn that firing Powell could destabilize financial markets, erode investor confidence, and lead to global economic uncertainty—this amidst the ongoing economic instability caused by Trump’s tariffs.

Powell has consistently defended the Fed’s independence, emphasizing that its decisions are based on economic data, not political pressure.

Some of the economists interviewed for this report argued that too much borrowing is dangerous.

Jerome Powell has repeatedly cautioned against excessive borrowing.

Some renowned policy practice analysts have also argued that when borrowing becomes too easy due to prolonged low interest rates, it can encourage reckless financial behavior, such as mismanagement of funds or investments in non-productive ventures.

This can result in bankruptcies and economic instability.

Additionally, some policy experts, including policy practice analysts interviewed for this report, also argued that excessive borrowing may force the government to print more money, leading to inflation and devaluation of the currency, which hurts consumers and businesses alike.

As the debate on Trump’s threat to fire Powell continues, some quarters of social media have openly stated that Trump’s tariffs are a huge problem and an anomaly.

Critics argue that his policy on tariffs is counterproductive to economic growth, even if such measures are intended to protect domestic industries.

The manner in which these tariffs have been implemented across the board creates a “shock and awe” effect, raising the cost of goods for consumers and businesses, and discouraging spending and investment.

Powell, in various speeches, has highlighted that these “shock and awe” tariff policies contribute to inflation and slow economic growth, creating challenges for the Federal Reserve’s dual mandate of stable prices and maximum employment.

Addressing these tariff policies is critical in fostering free trade, which could provide a more effective path to economic recovery and growth.

If Powell were to be fired, legal analysts interviewed for this report say that there would be a serious legal battle looming under the Federal Reserve Act.

This is because the president can only remove the Fed chair for cause, such as malfeasance or neglect of duty.

Legal experts suggest that firing Powell without cause would likely result in a protracted legal battle, potentially reaching the Supreme Court.

This, as legal experts argue, could set a dangerous precedent, weakening the Fed’s autonomy and its ability to make impartial decisions.

Consequences for the U.S. Economy and beyond the U.S. economy could face significant challenges if Powell is removed.

Market volatility is likely, as investors react to the uncertainty surrounding the Fed’s leadership.

The 12 regional Federal Reserve Banks, which implement monetary policy, could experience disruptions in coordination and decision-making.

Globally, the move could shake confidence in the U.S. financial system, affecting international trade and investment.

As it stands, the bigger picture with Trump’s push for lower interest rates contrasts sharply with Powell’s cautious approach, aimed at balancing inflation and economic growth.

Critics argue that Trump’s focus on short-term economic gains could have long-term consequences, including higher inflation and increased national debt.

Powell’s warnings about excessive borrowing and tariff policies highlight the need for a balanced and sustainable economic strategy.

This underscores the delicate balance between political influence and economic policy, with far-reaching implications for the U.S. and the world if Powell were to be removed illegally.

As it stands, the coming weeks will be critical in determining the outcome of this high-stakes conflict.

Yetunde B reports for Yeyetunde’s Blog.

Images @ Yeyetunde’s Lens & Photography.