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Republican senators caution Trump against Fed chair dismissal

GOP senators voice concerns over Trump's threats to fire Jerome Powell amid worries about economic stability.

July 17, 2025 at 04:09 AM

Senate Republicans warn Trump against firing Fed chair Jerome Powell

Republican senators express concern over Trump's potential removal of Fed Chair Powell.

Senate Republicans caution Trump against firing Jerome Powell

Federal Reserve Chair Jerome Powell has received backing from Republican senators who worry about the consequences if President Donald Trump follows through with threats to fire him. Some senators warn that this action could severely undermine the Fed's independence and introduce instability into the U.S. economy. GOP Senator Thom Tillis stated it would be a mistake to allow the Fed to operate under presidential influence. Although Trump has considered firing Powell, many Republicans believe that Powell's term ends next year, allowing for a more orderly transition.

Key Takeaways

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GOP senators warn against removing Fed Chair Powell.

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Firing Powell could harm economic stability and Fed independence.

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Republicans are divided on the approach to Trump's threats.

"If anybody thinks it would be a good idea for the Fed to become another agency in the government subject to the president, they’re making a huge mistake."

Senator Thom Tillis warns against undermining the Fed's independence.

"That would be litigated and I don’t see a reason, for cause or otherwise, to remove him."

Senator John Kennedy highlights the legal challenges of firing Powell.

"Independence does not mean impunity and I have long pushed for more transparency and accountability at the Fed."

Senator Elizabeth Warren calls for independence and accountability at the Federal Reserve.

"The most incompetent, worst Federal Reserve chairman in American history should resign."

Senator Bernie Moreno criticizes Powell amid growing party discussions.

This situation reveals a growing divide within the Republican Party regarding economic leadership and the Federal Reserve's independence. Traditional conservatives are advocating for the Fed's autonomy while some members express support for Trump's threats. The differing views highlight a critical tension between maintaining economic stability and appeasing the president’s desires. As the deadline for Powell's position approaches, the Republican party must navigate these internal conflicts to avoid backlash from both constituents and the markets.

Highlights

Firing Powell risks the integrity of our economy.
The markets expect an independent central bank.
This would be a mistake for the future of the Fed.
An attack on the Fed is an attack on economic stability.

Risks of undermining Fed's independence

Trump's potential removal of Jerome Powell raises concern among Republicans about economic stability and the reputation of the Federal Reserve. This could lead to political backlash and further unrest in financial markets.

The outcome may reshape the future of economic governance in the U.S.

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federal reserve jerome powell trump republicans economy politics economy

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