TOKYO – Donald Trump’s threat to fire the head of the Federal Reserve, America’s central bank, is a financial train wreck unfolding in real time for Asia.
No region is more on the frontlines of the shockwaves from any Trump move to dump Fed Chair Jerome Powell well before his term ends in May 2026. This risk seems like more of a “when” than an “if” as the US president’s tariffs backfire on the globe’s biggest economy.
Trump, it appears, views Powell as a ready scapegoat for the economic pain his import taxes are causing. And if his attacks on the Fed’s autonomy prod Powell to cut benchmark rates sooner than later, Trump may figure the end justifies the means to stimulate a US economy sagging on his watch.
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