A political firestorm erupted on Wall Street Wednesday as speculations surged that President Donald Trump could fire Federal Reserve Chair Jerome Powell before his term ends, reigniting fears over central bank independence.
Powell’s current term runs until May 2026. Legal scholars and market participants have long debated whether a sitting president has the authority to fire a Fed chair without evidence of misconduct—a move that would almost certainly spark a constitutional crisis and rattle global markets.
If Trump goes through with firing Powell, it would mark the first time in modern U.S. history that a president attempts to remove a Federal Reserve chair without cause.
On Kalshi, a CFTC-regulated prediction market platform, the probability of Powell being ousted by the end of 2025 has climbed to over 20%, its highest level since April.
This uptick in political risk comes after a New York Times report revealed that Trump had shown a draft letter firing Powell during a closed-door meeting with House Republicans.
Trump reportedly waved the letter in the Oval Office, polling …Full story available on Benzinga.com
