It’s no secret that Donald Trump does not like how Jerome Powell is managing the Fed and monetary policy. Despite nominating Powell for the job of Fed Chair in 2017, the President lambasts Powell (who Trump has nicknamed Mr. Too Late) every time the Fed’s Federal Open Markets Committee meets and doesn’t cut interest rates.
But President Trump should think again if he believes getting rid of Powell will get him what he wants. While the president is desperate for the Fed to cut interest rates, firing Powell before his term ends in eight months is no guarantee that rates would drop, and his departure would also likely rattle the financial markets.