GOP Senators Warn Trump Against Firing Powell

Federal Reserve Chair Jerome Powell is receiving key backing on Capitol Hill from GOP senators who fear the consequences if President Donald Trump follows through on threats to remove the politically independent central banker, Stephen Groves reported for the Associated Press (AP).

Removing the Fed chair could undermine the Federal Reserve’s independence and inject significant uncertainty into the foundations of the U.S. economy. I Photo: United States Congress

As Trump appeared to waver this week on whether to dismiss Powell, some Republicans in Congress began speaking out, warning that such a move would be a serious mistake.

Removing the Fed chair could undermine the Federal Reserve’s independence and inject significant uncertainty into the foundations of the U.S. economy.

“If anybody thinks it would be a good idea for the Fed to become another agency in the government subject to the president, they’re making a huge mistake,” said Sen. Thom Tillis (R-N.C.) in a floor speech.

Support from GOP members of the Senate Banking Committee highlights how traditional Republicans are carefully navigating a presidency in which Trump frequently floats economically destabilizing ideas—such as steep tariffs or firing the Fed chair—that risk eroding confidence in U.S. financial institutions.

Tillis, who recently announced he will not seek reelection after clashing with Trump, told the AP that firing Powell would mainly hurt "little guys like me who grew up in trailer parks and have a few thousand dollars in a 401(k)."

He also emphasized that the Fed's interest rate decisions are not made by Powell alone, but by a 12-member committee.