Senator Elizabeth Warren has issued a dire warning about potential market instability if US President Donald Trump removes Federal Reserve Chair Jerome Powell. According to Senator Warren, such an act would undermine investor confidence in the U.S. financial system, potentially leading to a significant crash. During an interview on CNBC, Senator Warren emphasized that removing Powell violates his legal authority and weakens American financial infrastructure. She asserted, “If Chairman Powell can be fired by the President of the United States, it will crash the markets. The financial infrastructure that keeps this stock market strong and therefore a large part of our economy strong, and a big part of the world economy strong, is the idea that the big pieces move independently of politics.” Meanwhile, Warren argues that removing Powell’s independence would erode the distinction between stable and unstable political systems. The controversy stems from President Trump’s persistent dissatisfaction with Powell, particularly due to his reluctance to lower interest rates. Trump, who believes this could boost asset prices like cryptocurrencies, has repeatedly called for Powell’s dismissal. The president’s criticisms intensified following a Truth Social post where he reiterated his desire to remove the chairman. Senator Rick Scott echoed these sentiments, advocating for complete Fed leadership changes. Market analyst Anthony Pompliano speculates that Trump may have intentionally destabilized financial markets as leverage for lower interest rate policy. He cites a recent drop in 10-year U.S. Treasury yield to 4% as evidence. However, the yield has since rebounded to 4.3%. The ongoing debate over interest rates and the Fed’s independence continues to be a major point of contention with significant implications for both domestic and global economies.