French Finance Minister Warns of Potential Dollar Instability if Jerome Powell Is Dismissed

The French Finance Minister has expressed concerns that removing Jerome Powell from his position could negatively impact the stability of the U.S. dollar. Powell’s leadership at the Federal Reserve is seen as a critical factor in maintaining global confidence in the dollar’s strength. Any abrupt change in leadership might lead to market uncertainty, affecting both domestic and international financial systems. The statement underscores the interconnected nature of global finance and the importance of continuity in key economic roles.

White House officials advise Trump not to fire Powell

Investors watched a fresh spike in market nerves as the comments circulated. Inside the White House, advisers have told Trump that breaking with decades of central‑bank independence could rattle already unstable financial markets, according to people familiar with the discussions. 

They also pointed to unanswered legal questions about whether a president can dismiss a Fed chief 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 intervention marked an unusually direct comment on U.S. 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 percent duties on some European Union imports. 

Lombard said that level is “a huge increase that isn’t sustainable for the US economy and represents major risks for global trade.” He added that Europe still wants a free‑trade zone with the United States and urged European chief executives to show “patriotism” by working with their governments to protect the region’s interests.

On Thursday, French billionaire Bernard Arnault, whose LVMH group owns Moët & Chandon, Veuve Clicquot, and Hennessy, hinted that EU leaders were not pressing hard enough for a tariff accord.

The tension around the Fed adds to a rough month on Wall Street, where investors have wrestled with the tariff wars and fears of slowing growth. Many see the central bank as a stabilizer. Undermining it, Lombard said, would shake confidence in the dollar itself.

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.

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