Former Federal Reserve officials advise Trump against interfering with central bank's independence

According to foreign media reports on Thursday, US President Trump recently met with former Federal Reserve Board member Kevin Warsh to discuss the possibility of replacing current Federal Reserve Chairman Powell early. However, sources revealed that Warsh advised Trump not to dismiss Powell or interfere with his term. Powell's current four-year term is set to end in May 2026. The meeting between Trump and Warsh took place at Trump's private club, Mar-a-Lago in Florida, as late as February of this year. In early March, others also discussed with Trump whether Powell should be replaced early. Trump has long been dissatisfied with Powell, especially on interest rate policy. He has repeatedly called for Powell to significantly lower interest rates and criticized his inaction. In a Truth Social post on Thursday morning, Trump angrily stated, "The sooner Powell is fired, the better." Later that afternoon, in the Oval Office, Trump further pressured Powell. He told reporters, "I am not happy with him, I have let him know. If I want him out, he will be out quickly, believe me." Faced with multiple questions from reporters about whether he really intended to replace Powell, Trump did not provide a direct response. It is worth noting that according to Powell's previous statements, under current law, the president does not have the authority to directly dismiss the Federal Reserve Chairman. This position has also received support from some members of Congress, including Democratic Senator Elizabeth Warren, who has been critical of Powell. She also issued a warning on Thursday that disrupting the independence of the Federal Reserve could have disastrous consequences for the US financial markets. As the Federal Reserve Chairman, Powell bears the important responsibility of formulating monetary policy and maintaining economic stability. The independence of central banks is widely regarded as a cornerstone of the modern financial system, and its operational model free from political interference is considered a crucial safeguard against runaway inflation and maintaining market confidence. Trump's actions once again raise concerns about his possible interference in financial policy. If the Federal Reserve is forced to adjust its policies under political pressure, it may not only weaken its global reputation but also shake investors' confidence in the US market.