President Donald Trump would put the credibility of the dollar on the line and destabilize the US economy if he fired Federal Reserve Chair Jerome Powell, French Finance Minister Eric Lombard warned.
“Donald Trump has hurt the credibility of the dollar with his aggressive moves on tariffs — for a long time,” Lombard said in an interview published in the La Tribune Dimanche newspaper. If Powell is pushed out “this credibility will be harmed even more, with developments in the bond market.”
The result would be higher costs to service the debt and “a profound disorganization of the country’s economy,” Lombard said, adding that the consequences would bring the US sooner or later to talks to end the tensions.
Lombard’s comments come after Trump, frustrated with Powell’s caution to cut US interest rates, posted on social media Thursday that Powell’s “termination couldn’t come quickly enough.” It wasn’t clear whether he meant he wanted to fire Powell or was eager for the end of his term, which is May 2026. National Economic Council Director Kevin Hassett said Friday Trump was studying whether he could fire him.
President Emmanuel Macron has opposed Trump on a series of issues including Ukraine, trade and even offered refuge in France for US-based scientists whose federal research funding has been cut.
Even so, Lombard’s comments are unusually direct about US domestic matters.
Read more: Trump Studying If Removing Powell Is Option, Hassett Says
On tariffs, France’s finance minister said the 10% tariffs Trump has imposed on imports from the EU don’t constitute “common ground” and that Europe’s goal is for a free trade zone with the US.
The 10% level is “a huge increase that isn’t sustainable for the US economy and represents major risks for global trade,” Lombard said.
The finance minister also called on European CEOs to show “patriotism” and work with their governments so the region doesn’t lose out.
On Thursday, French billionaire Bernard Arnault, whose group LVMH owns Champagne labels like Moët & Chandon and Veuve Clicquot as well as Hennessy Cognac, seemed to suggest that EU leaders weren’t pushing hard enough for an accord on tariffs.