Trump-Powell Feud Heats Up: Odds Of Fed Chair Ouster Spike

A political firestorm hit Wall Street Wednesday as speculation intensified that Trump may fire Federal Reserve Chair Jerome Powell before his term ends in 2026, raising alarms over central bank independence. The New York Times reported that Trump showed GOP lawmakers a draft termination letter and polled them on whether he should remove Powell.  Though Trump later claimed he had no imminent plans, he admitted “almost everyone” urged him to go through with it.  Legal scholars warn that such a move without cause could spark a constitutional crisis. The controversy deepened after the latest PPI report showed producer inflation easing more than expected. Trump allies also began targeting the Fed’s $2.5 billion renovation, suggesting it could justify Powell’s firing “for cause.”