Dismissal of Jerome Powell will collapse financial markets – Senator Elizabeth Warren

U.S. Senator Elizabeth Warren warned that if President Donald Trump eventually moves to Federal Reserve Chairman Jerome Powell, it could undermine investor confidence in the integrity of U.S. capital markets and trigger financial collapse.

The Massachusetts senator said during a CNBC appearance that the president had no legal authority to remove Powell from his position. Additionally, Warren added that the withdrawal of Powell would weaken U.S. financial infrastructure:

“If Chairman Powell can be fired by the U.S. president, it will collapse the market. Keeping that stock market solid infrastructure, so a big part of our economy is strong, and a big part of the world economy is the idea of ​​large fragments independent of political development.”

“If U.S. interest rates are bound by a president who only wants to wield a wand, this doesn’t separate us from the other two dictatorial regimes,” Warren continued.

President Trump has repeatedly called on Powell to fire on the grounds that the chairman is hesitant. Lower interest rates are often considered as a positive catalyst for risk-taking asset prices, including cryptocurrencies, and can reverse the market downturn caused by trade wars and current macroeconomic pressures.

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Trump’s dispute with the Federal Reserve Chairman

Trump criticized Powell for not lowering interest rates and called for an end to his termination in the Truth Social post on April 17, fierce speculation that he would follow the threat and find a way to remove the chairman.

Senator Rick Scott responded to Trump’s call for the removal of Powell. “It’s time to clean up the houses of all the people who work at the Fed, who are unwilling to help the American people and fight for their best interests,” Scott wrote in an opinion piece published on Fox News.

The Trump administration has repeatedly stated that lowering interest rates is the top priority. Market analyst and investor Anthony Pompomome recently speculated that Trump deliberately collapsed financial markets to force lower interest rates.

At the time, Pompliano mentioned that the yield on Treasury bills in 10 years reduced it to just 4%. Since then, the 10-year bond yield has increased to 4.3%.

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