French Finance Minister Eric Lombard has said that President Donald Trump could weaken the dollar and disrupt the United States economy if he axes the Federal Reserve chairman Jerome Powell.
Speaking to La Tribune Dimanche, Lombard said, “Donald Trump has hurt the credibility of the dollar with his aggressive moves on tariffs, for a long time.” He also said, “If Jerome Powell is pushed out, this credibility will be harmed even more, with developments in the bond market.”
The warning after Trump reiterated a threat that has been making for years, saying that he wants to fire Jerome Powell, the Fed chair he appointed in 2018. On Thursday, speaking in the Oval Office, the president said, “If I want him out, he’ll be out of there real fast, believe me,” moments after posting online that “Powell’s termination cannot come fast enough!”
White House officials kick against firing Jerome Powell
Investors watched fresh moves in market nerves as the comments circulated. According to people familiar with the discussion, advisors inside the White House have told Trump that breaking with decades of central bank independence could rattle already unstable financial markets.
They also pointed to unanswered legal questions about whether a president can dismiss Jerome Powell without cause. For now, those warnings have tempered action, the people said. Still, the debate is active. National Economic Council Director Kevin Hassett said Friday that Trump was “studying whether he could fire” Powell. The chair’s four‑year term ends in May 2026.
Lombard’s comments marked an unusually direct comment on US domestic policy from a French minister. President Emmanuel Macron has clashed with Trump on Ukraine and trade and has offered French research posts to American scientists whose funding was cut. Tariffs remain a second flash point. This month, the Trump administration imposed 10% duties on some European Union imports.
Now, the immediate question is whether the president will act on his threats. As Trump put it, “If I want him out,” he can move quickly. Whether markets would stay calm, Lombard suggested, is another matter entirely. Powell has not commented publicly on the latest threats as of yet.