French Finance Minister Warns 'Firing Powell Could Erode Dollar Trust, Cause U.S. Economic Turmoil'
Summary
- The French Finance Minister stated that the dismissal of Chairman Powell would further undermine the trust in the dollar, causing bond market instability.
- He warned of the possibility of increased borrowing costs and serious disruption to the U.S. economy if Chairman Powell is dismissed.
- The remarks were made shortly after President Trump mentioned the possibility of dismissing Chairman Powell.
French Finance Minister Eric Lombard expressed concern over the potential dismissal of Jerome H. Powell, the Chairman of the Federal Reserve (Fed).
According to Bloomberg on the 20th (local time), Minister Lombard said in an interview with a local French media outlet, "Trump has long undermined the trust in the dollar with aggressive tariff policies. If Powell is dismissed, that trust will be further damaged, along with bond market instability."
He further pointed out, "It will lead to increased borrowing costs and could cause serious disruption to the U.S. economy." These remarks came shortly after Trump recently mentioned the possibility of dismissing Powell. Previously, Trump stated last week, "If I want, he will be removed from that position immediately," and "Powell's dismissal should happen as soon as possible."
Suehyeon Lee
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