If Trump fires Powell, it will lead to disaster! Experts: The cost of undermining the Fed's independence is high and could trigger an economic recession.

Due to the strong dissatisfaction with the Fed's delay in cutting interest rates, US President Trump recently publicly clamoured to fire Fed Chairman Powell, Evercore ISI analysts warned that if Trump fires Powell, it will undermine the independence of the Fed and may directly trigger a recession. (Synopsis: Trump choked Powell "to fire you faster than cut interest rates", Fed independence affected will hit the market? (Background supplement: EU prepares to cut interest rates for the 7th time" Trump chokes Fed again: Powell always misjudges the economy and should fire and cut interest rates immediately) US President Trump has frequently opened fire in recent days, asking Fed Chairman Powell to cut interest rates to mitigate the blow to the economy caused by his tariff measures, and White House National Economic Council Chairman Kevin Hassett revealed on Friday that Trump and his team are "continuing to evaluate" whether to remove Bauer's option. In response, Evercore ISI analysts warned that any attempt by the Trump administration to fire Powell "will lead to a surge in stagnation inflation", but the firing is "unlikely", and it can be seen through the movement of the bond and foreign exchange markets that the market has lost confidence in Trump's economic policies. However, there are no signs yet that the market is losing confidence in the Fed, as indicators of inflation expectations remain low. Evercore ISI analysts believe that any move to undermine the independence of the Fed will lead to a surge in US long bond yields due to inflation risks, a sharp steeper of the yield curve, a collapse of the US dollar, and a comprehensive rise in various risk premiums, including equity risk premiums, which is likely to directly trigger a recession. Bauer became a scapegoat? But according to Barron's, former Fed officials and economists believe that worrying about Powell's imminent dismissal or that the Fed will be taken over by Trump may be overly worried, and instead believe that Trump is engaged in a more strategic political operation: He may keep Mr. Powell in office as a scapegoat in the event of a future economic deterioration. Former Fed Vice Chairman Lan Blinder analyzed that although Trump openly criticized Bauer, there is actually another political calculation behind it: Trump always wants to find other people's contemporary sinful lambs. Jared Bernstein, the chief economist of the White House under Biden, said that it is very likely that Trump is not replacing Powell, but intends to keep him in office, once the economy falls into recession, this is entirely caused by Trump's policies, but then Powell can act as a substitute. Power, whose term as Fed presidency runs until May 2026, has repeatedly stated that he will fulfill his full term, and he made it clear at a news conference last November that he would not resign even if the president asked him to leave because he did not see a legal obligation to do so. Bauer further stressed Wednesday that the Fed's independence is a "de jure fact" that is "widely understood and supported in Washington and Congress, and that's what really matters." Related reports Fed Bauer clearly "does not bail out", can cryptocurrencies wait for the liquidity feast? US think tank spouts Trump Bauer: Fed interest rate cut is too much, "inflation is about to explode", economics has completely failed Fed Powell shouted "no urgent interest rate cut", the US economy is still very strong; Trump responded: The action is too slow 〈If Trump fires Bauer, it will cause disaster! Expert: Undermining the Fed's independence is costly, and it may trigger a recession" This article was first published in BlockTempo's "The Most Influential Blockchain News Media".