Speaking to CNBC last week, Warren said that while the president cannot legally fire Powell, she wouldn't put anything past Trump. "This is a president who has shown himself willing to violate laws," she said. "If Chairman Powell can be fired by the president of the United States, it will crash the markets."
Don't Miss:
Warren Warns of Financial Chaos
Her comments came just hours after Trump on Thursday posted on Truth Social that, "Powell’s termination cannot come fast enough!" Trump accused Powell of being “too late and wrong” on interest rates and blamed him for slowing the economy.
Later that day, Trump doubled down, telling reporters, “I don’t think he’s doing the job. He’s too late, always too late… If I want him out, he’ll be out of there real fast, believe me.”
A Pattern of Pay-to-Play?
"The problem is, nobody can trust the system," Warren said. "There's no independence, no fairness. It's all, whose palm did you grease?"
“We have not built a strong economy in America based on that kind of pay-to-play,” she said.
See Also: Hasbro, MGM, and Skechers trust this AI marketing firm — invest pre-IPO from $0.60 per share now.
Fed Independence Goes Back Generations
Warren explained that the Fed's independence has been essential to American financial stability since the Civil War, when the Office of the Comptroller of the Currency was created in 1863 to ensure the integrity of the banking system during wartime.
She pointed out that, ever since, regulators have been kept financially and politically independent to avoid pressure from elected officials or wealthy donors.
“We need to preserve it not for the politics of the moment, but because overall, that's what keeps the system strong year after year, decade after decade.”
She warned that letting presidents interfere in monetary policy, especially by threatening job security, undermines that entire framework.
Powell has made it known that he does not believe the president has the authority to remove him. His term as Fed chair ends in May 2026.
Read Next:
Image: Shutterstock
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
To add Benzinga News as your preferred source on Google, click here.
