It is reported that Trump wants to replace Powell, former Federal Reserve officials advise him not to interfere with the independence of the central bank

According to foreign media reports on Thursday, the U.S. President Donald Trump recently met with former Federal Reserve Governor Kevin Warsh to discuss the possibility of replacing current Federal Reserve Chairman Jerome Powell ahead of schedule. However, sources revealed that Warsh advised Trump not to fire Powell or interfere with his term.

Powell's current four-year term is set to end in May 2026. Reports indicate that Trump's meeting with Warsh took place at his private club Mar-a-Lago in Florida, as late as February of this year. Just in early March, other individuals also discussed with Trump whether Powell should be replaced early.

Trump has long been dissatisfied with Powell, particularly regarding interest rate policies. He has repeatedly called for Powell to significantly lower interest rates and criticized his refusal to take action. In a Truth Social post released on Thursday morning, Trump angrily stated, "The sooner Powell is fired, the better."

That afternoon, in the Oval Office of the White House, Trump further pressured Powell. He told reporters, "I am not happy with him, and I have let him know. If I want him out, he will be gone quickly, believe me." When pressed by reporters about whether he truly intended to replace Powell, Trump did not respond directly.

It is noteworthy that, according to Powell's previous statements, under current law, the president does not have the authority to directly fire the Federal Reserve Chairman. This position has also garnered support from some members of Congress, including Democratic Senator Elizabeth Warren, who has been critical of Powell. She also issued a warning on Thursday that undermining the independence of the Federal Reserve could have catastrophic consequences for the U.S. financial markets.

As the Chairman of the Federal Reserve, Powell bears the important responsibility of formulating monetary policy and maintaining economic stability. The independence of central banks is widely regarded as the cornerstone of the modern financial system, and their operation free from political interference is seen as a crucial safeguard against runaway inflation and a means to maintain market confidence.

Trump's actions have once again raised concerns about his potential interference in financial policy. If the Federal Reserve is forced to adjust its policies under political pressure, it could not only undermine its credibility globally but also shake investors' confidence in the U.S. market