The WSJ report, quoting unnamed sources, said that Bessent had warned Trump about the possible legal, political, and market consequences of firing Powell before his term ends in May 2026.

The Wall Street Journal reported on Saturday that Bessent made clear his concerns about firing the Fed chairman in private talks with the president last week.

Potential removal of Fed Chair Jerome Powell could disrupt markets, spike inflation expectations, and impact the USD and bonds.

J.P. Morgan warned in a note that Trump's pressure on the Federal Reserve and threats to fire Chair Powell could undercut central bank independence and increase inflation risks.

Economists interviewed by Newsweek warned that removing Powell now would roil markets, erode trust in U.S. institutions and ultimately hurt ordinary Americans.

Explore why Fed independence is crucial for market stability, the impact of tariffs on inflation, and the risks of undermining Federal Reserve credibility. Read what investors need to know.

If President Donald Trump were to fire Federal Reserve Chair Jerome Powell, it could have unintended and severe consequences that reverberate throughout the US economy and global markets.

Reports of Trump firing Fed Chair Powell caused major indexes to fall midday Wednesday, but losses were pared as Trump backed off.

Jerome Powell’s cautious rate policy sparks fierce criticism and succession talks, putting his Fed Chair tenure under unprecedented scrutiny.

Reports that President Trump was considering trying to remove Federal Reserve Chair Jerome Powell have had a clear, if modest, effect on the bond market—even after Trump told reporters that he [wasn’t “planning on doing anything.