Firing Powell Would Hurt Dollar and U.S. Economy, Says France

President Donald Trump would undermine the credibility of the US dollar and destabilize the nation’s economy if he follows through on firing Federal Reserve Chair Jerome Powell, French Finance Minister Eric Lombard warned, Tara Patel reported for Bloomberg News.

Trump has publicly criticized Powell’s hesitancy to cut interest rates. I Photo: U.S. Federal Reserve Flickr

“Donald Trump has already hurt the dollar’s credibility with his aggressive tariff policies,” Lombard said in an interview with La Tribune Dimanche. “If Powell is pushed out, that credibility will be harmed even further, especially with consequences in the bond market.”

He warned that such a move would increase US debt servicing costs and could lead to “a profound disorganization of the country’s economy,” eventually forcing the US to enter talks to resolve the resulting tensions.

Lombard’s remarks follow Trump’s public criticism of Powell’s hesitancy to cut interest rates.

On Thursday, Trump posted on social media that Powell’s “termination couldn’t come quickly enough,” though it was unclear whether he meant firing Powell or awaiting the end of his term in May 2026. National Economic Council Director Kevin Hassett confirmed Friday that Trump was exploring whether he had the authority to dismiss him.

French President Emmanuel Macron has clashed with Trump on several issues, including Ukraine and trade policy, and has previously offered sanctuary to US-based scientists affected by federal research funding cuts.