President Donald Trump’s renewed threats to remove Federal Reserve Chair Jerome Powell are intensifying legal and economic uncertainty, according to CNBC. Legal experts say Trump lacks clear authority to remove the Fed chair without cause, and any attempt to do so would likely trigger a Supreme Court-bound legal battle. Critics worry that ongoing interference could erode investor confidence, damage the Fed’s credibility, and push inflation expectations higher. Analysts warn that even if Powell were removed, the Federal Open Market Committee could keep him in a leadership role, limiting the practical impact, but not the reputational harm. Wall Street economists warn that political interference in Fed policy could trigger inflation and long-term fiscal risks, echoing mistakes of the 1970s. Past cuts under pressure led to higher Treasury yields, tightening conditions instead of easing them. As Trump continues his campaign of pressure, the Fed is expected to stay its course, even as legal and economic tensions mount.
