US Dollar Risks Breakdown if Fed Chair Is Fired, Warns French Official

Global Markets at Risk as Trump Eyes Removal of Fed Chair Jerome Powell

French Finance Minister Eric Lombard voiced sharp concerns about U.S. economic stability in remarks published Saturday, warning that President Donald Trump’s removal of Federal Reserve Chair Jerome Powell would seriously undermine the global standing of the U.S. dollar. In an interview with La Tribune Dimanche, cited by Bloomberg, Lombard cautioned that Trump’s monetary interventions threaten both domestic and international financial markets:

Donald Trump has hurt the credibility of the dollar with his aggressive moves on tariffs — for a long time.

He warned that removing Powell could worsen the situation, stating: “This credibility will be harmed even more, with developments in the bond market.”

Trump has intensified attacks on Federal Reserve Chair Jerome Powell, demanding rate cuts and accusing him of political bias. Despite the pressure, Powell has signaled no plans to lower rates. On Thursday, Trump said Powell’s “termination couldn’t come quickly enough,” raising questions about whether he seeks Powell’s removal before his term ends in May 2026. Bloomberg reported that National Economic Council Director Kevin Hassett confirmed Trump is reviewing the legality of dismissing Powell.

Lombard warned that removing Powell would be “a profound disorganization of the country’s economy,” resulting in higher debt servicing costs and eventually pushing the country toward negotiations to ease tensions.

On trade, he criticized the Trump administration’s 10% tariffs on European Union imports as unsustainable for the U.S. economy and a threat to global trade. He dismissed the idea that the tariffs could serve as a foundation for a transatlantic trade agreement, saying they lacked common ground. Lombard also urged European CEOs to work with their governments to prevent the region from falling behind.