Serious Question: What would happen if Trump fired Powell?

[RSD1]

The quoted text below is from the article linked below, quoting an opinion about what might happen to the value of the dollar, equities, treasuries, and pretty much every other US asset in the financial markets if Trump fired Powell. It sounds like a pretty ominous prediction, but I’m wondering how realistic it actually is. Do the markets really care that much about Jerome Powell and his job, or whether the Fed has independence?

 

I’m not sure what to think of the prediction. In my opinion, I don’t think investors are that concerned about the Fed having independence. In fact, a lot of investors don’t really like what the Fed does anyway, so perhaps the market would actually cheer it if Trump fires Powell and cuts interest rates by 200 basis points overnight. 

 

I realize there’s a lot of volatility in the market right now, which might suggest that the market is fearful of Powell being fired. That would indicate a possible negative response to his actual firing, but maybe the volatility is just due to the uncertainty. After Powell was fired, maybe the markets would stabilize and find a bottom following an initial sell-off.

 

I don’t really know, and I’m not claiming to know, but I’d be interested to hear some other opinions, especially if anyone has any real understanding of the market dynamics of it beyond armchair speculation.

 

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Quoting the article:

 

“Were Powell to be fired, the initial reaction would be a huge injection of volatility into financial markets, and the most dramatic rush to the exit from U.S. assets that it is possible to imagine,” said Michael Brown, a senior research strategist at Pepperstone, an Australian-based provider of trading services.

“Lower, much lower, equities; Treasuries sold across the board; and, the dollar falling off a cliff,” Brown wrote in a note on Monday. Any sign of the longstanding, independent nature of the Fed coming under threat “would see investors across the globe selling every single U.S.-based asset that they have, and also poses the genuinely scary prospect of upending the entire way in which the global financial system operates. If this were to happen, then the reserve status of the dollar, and haven value of Treasuries, would be wiped out, probably forever in both cases.”

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Source:

https://www.marketwatch.com/story/what-the-fire-powell-trade-could-look-like-as-trump-attacks-fed-chair-again-53511c3b

[blaze master]

He would need to find another job I presume.

[Presnock]

20 minutes ago, RSD1 said:

The quoted text below is from the article linked below, quoting an opinion about what might happen to the value of the dollar, equities, treasuries, and pretty much every other US asset in the financial markets if Trump fired Powell. It sounds like a pretty ominous prediction, but I’m wondering how realistic it actually is. Do the markets really care that much about Jerome Powell and his job, or whether the Fed has independence?

 

I’m not sure what to think of the prediction. In my opinion, I don’t think investors are that concerned about the Fed having independence. In fact, a lot of investors don’t really like what the Fed does anyway, so perhaps the market would actually cheer it if Trump fires Powell and cuts interest rates by 200 basis points overnight. 

 

I realize there’s a lot of volatility in the market right now, which might suggest that the market is fearful of Powell being fired. That would indicate a possible negative response to his actual firing, but maybe the volatility is just due to the uncertainty. After Powell was fired, maybe the markets would stabilize and find a bottom following an initial sell-off.

 

I don’t really know, and I’m not claiming to know, but I’d be interested to hear some other opinions, especially if anyone has any real understanding of the market dynamics of it beyond armchair speculation.

 

---

 

Quoting the article:

 

“Were Powell to be fired, the initial reaction would be a huge injection of volatility into financial markets, and the most dramatic rush to the exit from U.S. assets that it is possible to imagine,” said Michael Brown, a senior research strategist at Pepperstone, an Australian-based provider of trading services.

“Lower, much lower, equities; Treasuries sold across the board; and, the dollar falling off a cliff,” Brown wrote in a note on Monday. Any sign of the longstanding, independent nature of the Fed coming under threat “would see investors across the globe selling every single U.S.-based asset that they have, and also poses the genuinely scary prospect of upending the entire way in which the global financial system operates. If this were to happen, then the reserve status of the dollar, and haven value of Treasuries, would be wiped out, probably forever in both cases.”

---

 

Source:

https://www.marketwatch.com/story/what-the-fire-powell-trade-could-look-like-as-trump-attacks-fed-chair-again-53511c3b

I definitely am no financial/economic expert.  But, I also can see the "handwriting on the wall" so to speak.  Already, Trump has upended the entire global trade situation and many countries around the world of course are just waiting to see if things will stabilze a bit except for the BRICS main players who would immediately charge against the dollar and along with them all the countries holding US bonds would immediately sell off whatever they were holding, putting even greater pressure on the sinking dollar.  And for sure, IMHO none would ever TRUST in the US again, knowing that the government and constitution mean absolutely NOTHING to politicians and the public is so stupid to continue to elect such useless leaders!  Meanwhile, any country wold probably be SAFER as ALL BENEFITS within the US would cease, crime would be the entire news daily as people would be fighting just to survive - TOTAL CHAOS.  Voters must think about what kind of future they want for them and their children.

[Tug]

Well the market certainly isn’t happy about king trump meddling with the fed last time I looked it’s down another 1000 points IRAs just a tanking pensions in danger all because of one old spoiled trustfund baby wants all the toys……tell me magga tired of winning yet?elections have consequences!

[bkk6060]

The dollar and markets would crash.

[swissie]

To fire Powell would only make sense, if he could replace him with someone that will "knock down" interest rates. Donald repeatetly said he wants interest rates and the Dollar lower.

 

Result: Increased money supply plus tariffs would kick off another round of increased inflation. Market reaction would be a selloff of US treasuries, thus actually raising interest rates.

 

Donald would find nobody within the financial community that would implement something like that. He would have to replace Powell by a "Economy-Ignorant", mirrororing his own lack of Macro-Economic comprehention.

 

Robert Kennedy jr comes to mind or someone else that mentally resides in economic la-la land.

[short-Timer]

Just start printing more money again, brrrrrrrr.

[Hamus Yaigh]

On 4/22/2025 at 3:49 AM, blaze master said:

He would need to find another job I presume.

Unfortunately we got Trump for 4 years unless he's impeached so not that easy.

[KhunLA]

Powell would be out of a job, what ever that is or was.

[Hamus Yaigh]

On 4/22/2025 at 3:37 AM, RSD1 said:

I don’t really know, and I’m not claiming to know

And there's your answer in your own words. You don't know.

 

Stock Market: The Federal Reserve's independence is critical for investor confidence. Firing Powell would signal political interference, raising fears of mismanaged monetary policy, higher inflation, or economic instability. This uncertainty could trigger a sharp decline in stock prices, as seen in recent market drops following Trump's attacks on Powell (e.g., S&P 500 fell 2.4% on April 21, 2025).

 

Dollar: Powell's removal could erode global trust in U.S. monetary governance, weakening the dollar's status as the world's reserve currency. Investors might flee to safer assets like gold, as evidenced by the dollar hitting a three-year low after Trump's threats.

 

Bond Sell-Offs: Firing Powell could lead investors to demand higher yields on U.S. Treasuries due to perceived risks of inflation or default, especially if Trump pushes for lower rates amid tariff-driven inflation. This would cause bond prices to fall, with yields like the 10-year Treasury already rising above 4.4%.

 

The threat alone has already rattled markets, as seen last Monday, so Trump has since had to wind his neck in.

[Presnock]

Guess Trump finally got the message on that possibility - as he has come out on camera saying no way he would do that..  Experts say this shows that the head of the Fed reserve is more powerful than the president.   

[mania]

Quote

Serious Question: What would happen if Trump fired Powell?

 

 

It is funny watching people/leftists wring their hands about stupid things without even know what the FED is or how it was created or who owns it.... etc etc etc

 

Go read 

"The creature from Jekyll Island" by G. Edward Griffin for starters then maybe "End The FED" by Ron Paul