French Finance Minister Eric Lombard has raised concerns over Donald Trump’s aggressive stance towards Federal Reserve Chair Jerome Powell, warning that any move to fire him could seriously damage the global trust in the US dollar. In an interview with La Tribune Dimanche, Lombard emphasized that the dollar’s credibility has already been weakened due to Trump’s unpredictable tariff policies, and removing Powell would only deepen financial instability.
Lombard added that pushing Powell out could trigger chaos in US bond markets, raise debt servicing costs, and lead to a major disruption in the American economy. This, he warned, could eventually force the US to seek negotiations to calm the economic tensions.
These warnings follow Trump’s recent social media post criticizing Powell, saying his “termination couldn’t come quickly enough.” While it’s unclear if Trump intends to fire Powell or is merely waiting for his term to end in 2026, officials like National Economic Council Director Kevin Hassett have confirmed Trump is reviewing his legal options.
— With inputs from Bloomberg
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