Trump threatens to fire Powell again: He is so incompetent that he should be prosecuted, Basant if you don't handle it, I'll fire you.

Trump publicly threatened to fire Powell and Brainard at the US-Saudi Investment Forum, impacting the independence of the Federal Reserve, with the Supreme Court becoming the next battleground. (Background: Trump announced his choice for the next Federal Reserve Chair will be decided by Christmas, wanting to replace Powell but facing obstacles.) (Supplemental Background: Musk returns to the White House for a handshake reconciliation with Trump, attending a banquet with Tim Cook, Cristiano Ronaldo, and Jen-Hsun Huang.) This week, US President Trump’s offhanded “fire” threat at the “US-Saudi Investment Forum” sent shockwaves through Wall Street. It was not just an emotional remark but a direct blow to the independence of the Federal Reserve, forcing the market to shift its focus from the interest rate dot plot to the power struggle between the White House and the Supreme Court. The “fire” warning under the Washington spotlight. The Federal Open Market Committee (FOMC) had lowered the overnight interest rate to a range of 3.75% - 4% in October, yet Trump still criticized it as “far from enough.” He harshly condemned Federal Reserve Chair Powell as “severely incompetent,” stating: “I would love to fire his ass.” The attack then shifted to Treasury Secretary Brainard: “The rates are too high, Scott. If you don’t solve this problem quickly, I’ll fire you too.” When the President directly places the responsibility of monetary policy on the Cabinet, the market interprets it as the White House’s patience with the Federal Reserve having run out. Divided White House: Moderates versus Radicals. In the face of Trump’s public humiliation, Brainard still advocated for maintaining institutional stability, becoming one of the few “moderates” in Washington. Opposing him is the radical faction led by Commerce Secretary Raimondo, who calls for Powell’s immediate replacement, saying, “Let him get lost.” White House spokesperson Kush Desai later claimed confidence in Brainard, but in Washington's context, this often means the opposite. Chain reactions from the courts to the markets. The real turning point may not be in the Oval Office, but at the Supreme Court. The Trump v. Wilcox ruling in May amplified the President’s ability to remove officials from independent agencies, leaving openings to challenge the Federal Reserve. The next key battle is Trump v. Cook, where Trump seeks to remove Federal Reserve Governor Lisa Cook under the pretext of “mortgage fraud,” with the case set to be argued on January 21, 2026. The Trump team aims to redefine “just cause,” claiming the President has absolute personnel authority over central bank officials. If the Supreme Court ultimately supports Trump’s assertion, the risk premium on dollar assets may need to be reassessed; conversely, if the Federal Reserve is confirmed to enjoy stronger term protections, the White House’s influence over interest rate paths will be curtailed. Stress testing the institutional baseline. This storm has left the market facing dual uncertainties: whether Powell can last until the end of his term in 2026 and whether Brainard can survive the current crisis. Investors, who previously focused on non-farm payroll reports or core inflation numbers, now must closely monitor the Supreme Court’s schedule. The reason is simple—if Trump can indeed remove central bank leaders based on “policy disagreements,” the century-old line of Federal Reserve independence will show cracks, which will change how global capital prices the US system. Before conclusions emerge, Wall Street can only seek clues amid the interest rate dot plots and the sound of the gavel. Trump’s ultimatum suggests one thing: this is not just a battle over borrowing costs but a stress test of the US financial constitutional framework. Related reports: Is Trump launching a crypto tax offensive? The White House reviews the proposal “to comply with CARF crypto asset reporting framework,” requiring taxation on overseas accounts. Trump ventures into property tokenization! The Trump Organization collaborates with Dar Global to create a luxury resort, with the project “tokenized from the start.” CZ’s lawyer personally describes the story behind “Trump’s pardon”: no payment, impossible to return to Binance. <Trump threatens to fire Powell again: He is incompetent enough to be prosecuted, Brainard, if you don’t handle this, you’re fired.> This article was originally published in BlockTempo, the most influential blockchain news media.