Senior Democratic Senator Elizabeth Warren warned in a speech on the New York Stock Exchange on April 17 that if President Trump uses his power to fire Federal Reserve Chairman Powell, it may trigger a collapse in the U.S. stock market. The remarks directly point to Trump's fierce attack on Powell through social media earlier that day.

Warren stressed that although she and Powell have differences in regulatory and interest rate policies, the key to supporting the US stock market and even the global economy lies in the institutional design of "the Federal Reserve is independent of political intervention." She warned that if key economic leverage is handed over to the president who only wants to wave his wand, the United States will be no different from the "second-rate country".

Just hours before Warren's speech, Trump posted on his social media platform: "Powell always reacts too slowly and always makes mistakes. Yesterday's report was a complete mess!" He reiterated that he hoped Powell would follow the ECB's sharp cuts, and said that the faster the dismissal, the better. In the Oval Office of the White House that afternoon, Trump also said: "If I want to fire him, he will leave immediately."

Legal disputes over whether the president can fire the Federal Reserve Chairman continue to ferment. The two have been disagreeing for a long time and can be traced back to Trump's first term. Since taking office in 2018, Powell has repeatedly stated that the president has no right to remove him from office, and said he would resort to legal means to safeguard his position. (International Finance News)