Republican Senators Warn Trump Against Firing Fed Chair Powell Amid Fraud Probe

President Trump is considering firing Federal Reserve Chair Jerome Powell, a move that has sparked warnings from Republican senators about potential market instability and threats to the Fed's independence. While Trump has criticized Powell for his handling of interest rates and the Fed’s renovation spending, he has stated that firing Powell is "highly unlikely, unless there is fraud," referencing an ongoing investigation into cost overruns related to the Federal Reserve building’s renovation. Some GOP lawmakers express shared frustrations with Powell but emphasize legal restrictions, noting the Fed Chair can only be removed "for cause." Trump has also discussed alternative candidates like Scott Bessent and Kevin Hassett with House Republicans. The possibility of Powell's removal has unsettled markets, causing declines in U.S. Treasury bonds and the dollar, and prompting some investors to consider gold as a safe haven. Experts warn that firing Powell could trigger market panic and undermine confidence in U.S. monetary policy, highlighting the risks involved in challenging the Fed's traditional independence.