President Donald Trump has signaled that he may try to remove Federal Reserve Chair Jerome Powell, triggering serious concern among global economic leaders. French Finance Minister Eric Lombard warned that such a move would destabilize markets, weaken the U.S. dollar, and erode investor confidence in the U.S. financial system.
🗽 Trump vs. Jerome Powell
Trump has criticized Powell for not lowering interest rates fast enough and recently tweeted that Powell’s “termination couldn’t come quickly enough.” While Powell’s term ends in May 2026, Trump’s team is reportedly exploring legal ways to replace him earlier.
📉 Why the Fed Chair Matters
The Federal Reserve is a central bank meant to operate independently of political influence. It plays a critical role in managing interest rates and supporting economic stability. If a president removes the Fed Chair over policy disagreements, it would set a dangerous precedent, suggesting the Fed is subject to political control, which could rattle financial markets and damage the long-term credibility of the U.S. economy.
🇫🇷 French Warnings and EU Concerns
French Finance Minister Lombard strongly criticized Trump’s actions and warned that:
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Firing Powell could cause economic disorganization.
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Investor trust in U.S. bonds and the dollar could decline.
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Trump’s 10% tariffs on EU imports are also harmful, making trade cooperation harder.
Lombard emphasized that Europe seeks fair and open trade, not “mutual protectionism,” and that Trump’s policies are unsustainable for both the U.S. and global economy.
🌍 Broader Global Impact
The International Monetary Fund (IMF) also voiced concerns. IMF chief Kristalina Georgieva noted that:
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The global economy is already strained due to inflation, uncertainty, and fragmented trade.
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More division and conflict, like threats against the Fed and new trade barriers, could worsen global economic risks.
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She called for unity and resilience in economic policy, urging world leaders to cooperate rather than compete.
✅ Summary Points
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Trump may fire Fed Chair Jerome Powell, upsetting global markets.
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French and EU officials believe this could damage the U.S. dollar and investor confidence.
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Trump’s tariffs on Europe add more strain to international trade.
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The IMF is warning that increased conflict could hurt the global economy.
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Experts agree: global cooperation is needed, not political interference in monetary policy.
In short: World leaders are increasingly worried that Trump's pressure on the Federal Reserve and aggressive trade moves could destabilize the global economy and seriously harm the credibility of the U.S. dollar.
