Firing Jerome Powell may harm the dollar, says French Finance Minister

Source Cryptopolitan

French Finance Minister Eric Lombard said Sunday that President Donald Trump would weaken the dollar and disrupt the United States economy if he removed Federal Reserve Chair Jerome H. Powell.

“Donald Trump has hurt the credibility of the dollar with his aggressive moves on tariffs, for a long time,” Lombard told La Tribune Dimanche. “If Powell is pushed out, this credibility will be harmed even more, with developments in the bond market.” 

He warned that higher borrowing costs would follow and a “profound disorganization of the country’s economy” would result, forcing Washington to seek talks “sooner or later” to calm tensions.

The remarks landed after Trump renewed a threat that has hovered for years: firing the Fed chair he appointed in 2018. On Thursday, speaking in the Oval Office, the president said, “If I want him out, he’ll be out of there real fast, believe me,” moments after posting online that “Powell’s termination cannot come fast enough!” 

White House officials advise Trump not to fire Powell

Investors watched a fresh spike in market nerves as the comments circulated. Inside the White House, advisers have told Trump that breaking with decades of central‑bank independence could rattle already unstable financial markets, according to people familiar with the discussions. 

They also pointed to unanswered legal questions about whether a president can dismiss a Fed chief without cause. For now, those warnings have tempered action, the people said.

Still, the debate is active. National Economic Council Director Kevin Hassett said Friday that Trump was “studying whether he could fire” Powell. The chair’s four‑year term ends in May 2026.

Lombard’s intervention marked an unusually direct comment on U.S. domestic policy from a French minister. President Emmanuel Macron has clashed with Trump on Ukraine and trade, and has offered French research posts to American scientists whose funding was cut.

Tariffs remain a second flash point. This month, the Trump administration imposed 10 percent duties on some European Union imports. 

Lombard said that level is “a huge increase that isn’t sustainable for the US economy and represents major risks for global trade.” He added that Europe still wants a free‑trade zone with the United States and urged European chief executives to show “patriotism” by working with their governments to protect the region’s interests.

On Thursday, French billionaire Bernard Arnault, whose LVMH group owns Moët & Chandon, Veuve Clicquot, and Hennessy, hinted that EU leaders were not pressing hard enough for a tariff accord.

The tension around the Fed adds to a rough month on Wall Street, where investors have wrestled with the tariff wars and fears of slowing growth. Many see the central bank as a stabilizer. Undermining it, Lombard said, would shake confidence in the dollar itself.

The immediate question is whether the president will act on his threats. As Trump put it, “If I want him out,” he can move quickly. Whether markets would stay calm, Lombard suggested, is another matter entirely. Powell has not commented publicly on the latest threats as of yet.

Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
China sends warning to BYD and its rivals amid heightened price warsChinese authorities summoned executives from the country’s major electric vehicle (EV) manufacturers, including industry leader BYD Co., to a closed-door meeting in Beijing this week, according to people familiar with the matter, cited by Bloomberg.
Author  Cryptopolitan
Jun 06, Fri
Chinese authorities summoned executives from the country’s major electric vehicle (EV) manufacturers, including industry leader BYD Co., to a closed-door meeting in Beijing this week, according to people familiar with the matter, cited by Bloomberg.
placeholder
NZD/USD Price Forecast: Rejection at 0.6080 brings 0.6000 back into playNew Zealand Dollar’s upside attempts were capped at 0.6180 on Thursday, and the pair is extending the reversal on Friday, against a somewhat firmer US Dollar, which brings the 0.6000 support area back into focus.
Author  FXStreet
Jun 06, Fri
New Zealand Dollar’s upside attempts were capped at 0.6180 on Thursday, and the pair is extending the reversal on Friday, against a somewhat firmer US Dollar, which brings the 0.6000 support area back into focus.
placeholder
Solana Price Forecast: SOL tests $140 support zone amid rising selling pressureSolana (SOL) edges higher by 2% at press time on Friday as it avoids a drop to the $140 support zone. However, the Solana price trend is approaching its second consecutive bearish week close, following a near 6% drop on Thursday.
Author  FXStreet
Jun 06, Fri
Solana (SOL) edges higher by 2% at press time on Friday as it avoids a drop to the $140 support zone. However, the Solana price trend is approaching its second consecutive bearish week close, following a near 6% drop on Thursday.
placeholder
US Dollar Index (DXY) nudges up to 99.00 with markets bracing for the US NFPThe US Dollar Index (DXY) is showing a moderately positive tone on Friday, with investors trimming US Dollar lows ahead of May’s US Nonfarm Payrolls release.
Author  FXStreet
Jun 06, Fri
The US Dollar Index (DXY) is showing a moderately positive tone on Friday, with investors trimming US Dollar lows ahead of May’s US Nonfarm Payrolls release.
placeholder
Stock Futures Edge Up as Trump-Musk Feud Cools, Jobs Report LoomsU.S. stock futures edged higher on Friday as markets awaited the critical May nonfarm payrolls report and signs emerged that the escalating feud between President Donald Trump and Elon Musk may be cooling.
Author  Insights
Jun 06, Fri
U.S. stock futures edged higher on Friday as markets awaited the critical May nonfarm payrolls report and signs emerged that the escalating feud between President Donald Trump and Elon Musk may be cooling.
goTop
quote