French Finance Minister warns: Firing Powell will endanger the credibility of the dollar and undermine the stability of the US economy.

French Finance Minister Eric Lombard warned that if US President Trump dismisses Federal Reserve Chairman Powell, it would endanger the credibility of the US dollar and destabilize the US economy. Lombard said in an interview, "Trump's aggressive actions on tariffs have damaged the credibility of the dollar. If Powell is ousted, with the development of the bond market, this credibility will be further damaged." He stated that the result would be higher debt repayment costs and severe economic chaos. He also added that these consequences would eventually prompt the US to negotiate to end the tense situation. At the time of Lombard's statement, Trump had been pressuring Powell to cut interest rates and claimed he could immediately remove Powell from office. White House National Economic Council Director Kevin Hassett confirmed on April 18th that Trump and his team were studying whether Powell could be fired. Since the start of Trump's second term, the conflict between him and Powell has intensified. This conflict has raised widespread concerns about the independence of the Federal Reserve being compromised. The independence of the Federal Reserve has long been considered a key factor in maintaining macroeconomic stability. However, whenever political forces attempt to interfere with central bank policy, it often leads to out-of-control inflation or damaged market confidence. Former Federal Reserve Chairman Ben Bernanke warned, "Political intervention in monetary policy could produce adverse boom-bust cycles, ultimately leading to economic instability and rising inflation." Sarah Binder, a senior researcher at the Brookings Institution, also pointed out, "The Federal Reserve needs public confidence. But if the president tries to remove Powell, it will only increase uncertainty." Kathy Jones, Chief Fixed Income Strategist at the Schwab Center for Financial Research, cautioned that attempting to dismiss Powell could exacerbate the selling of US bonds and the dollar. Those around Trump also seem to understand the concerns about the erosion of the Federal Reserve's independence. According to sources, Trump has discussed the possibility of dismissing Powell before the end of his term with former Federal Reserve Board Member Kevin Warsh, and considered having Warsh succeed Powell as Chairman. However, Warsh advised Trump against firing Powell, arguing that he should be allowed to complete his term to avoid interfering with the independence of the Federal Reserve. US Treasury Secretary Benet privately warned Trump that replacing the Federal Reserve Chairman could increase market uncertainty and weaken investor confidence. Regarding tariffs, Lombard stated that Trump's imposition of a 10% tariff on goods imported from the European Union does not represent a "common ground," as Europe's goal is to establish a free trade area with the US. He said that the 10% tariff "is unsustainable for the US economy, and poses a significant risk to global trade." He also urged European CEOs to show "patriotism" and cooperate with their governments so that the Eurozone would not suffer losses.