Trump Signals Reluctance to Fire Fed Chair Powell Amid Policy Dispute

President Donald Trump has recently reversed his stance and now considers it highly unlikely that he will fire Federal Reserve Chair Jerome Powell, despite previous indications that he wanted Powell to resign. Trump's initial push to replace Powell aimed to install a chairman who would align with his monetary policy preferences, particularly on interest rates, but such moves risk destabilizing global markets and undermining the Federal Reserve's independence. Economic experts emphasize that an independent Federal Reserve is crucial for controlling inflation and ensuring economic efficiency, warning that political interference often leads to embedded inflation and economic harm. Despite Trump’s public denial of plans to fire Powell, he has hinted that Powell could leave before his term ends, and reports reveal Trump even drafted a letter to remove him. These tensions highlight a broader struggle over control of U.S. monetary policy and its implications for both domestic and global economies. The ongoing conflict reflects a damaging politicization of the Federal Reserve, which many view as a critical institution for economic stability.