Democrats warn: Trump's "purge" targets Powell

Source: Jin10

U.S. Senator Elizabeth Warren warned that Federal Reserve Chairman Powell could be fired by President Trump, stating that this is part of a purge that could disrupt the U.S. markets.

The Democrat from Massachusetts said that Trump’s claim of having broad power to oust independent agency officials means that “no one is safe, not even the Federal Reserve Chairman”.

Warren said in an interview with Bloomberg Television on Wednesday: “If he (referring to Trump) can just trample on every civil servant, if he can just trample on the Consumer Financial Protection Bureau, then that’s a kind of lawlessness, meaning all power belongs to the king.”

She believes that the president’s behavior is illegal.

Warren previously opposed Biden’s reappointment of Powell, as the Federal Reserve Chair supports reducing financial regulations. However, she stated that she supports the independence of the Federal Reserve and other agencies such as the Federal Trade Commission, and also supports the independence of other agencies, including the Inspector General. Although the law is designed to protect the independence of these agencies, Trump still targeted them.

Warren also criticized Elon Musk and Trump’s mass layoffs of federal workers as “lawless”.

She also warned that relaxing regulatory measures that protect investors could weaken the appeal of U.S. capital markets and ultimately impact the U.S. economy. She said, “Part of the reason our stock market is so valuable is because it has fair and transparent rules that are strictly enforced.”

She accused the Securities and Exchange Commission (SEC) chairman Paul Atkins, chosen by Trump, of voting to relax regulations before the 2008 financial crisis, and believes he did not learn from the crisis and the subsequent taxpayer bailout.

Senate Democratic Leader Chuck Schumer previously decided to abandon procedural blockades against the Republican spending plan, thereby avoiding a government shutdown earlier this month. Many Democrats had tried to take this opportunity to limit Musk’s large-scale layoffs of federal workers and cancellation of contracts.

Warren said, “I think there comes a moment when you have to stand up and fight. We cannot shy away from this struggle because Donald Trump and Elon Musk, they really just want to take over this country for a small group of people, they want more wealth and power for themselves, while others have to pay the price for it.”

Warren wrote a letter to Commerce Secretary Howard Lutnick on Tuesday, urging him to explain how the Trump administration plans to prevent companies from raising prices under the guise of tariffs. She wrote in the letter, “Tariffs can be a strategic tool for developing American industry and good manufacturing jobs, but President Trump’s blanket tariffs are chaotic and not strategic. I am deeply concerned that President Trump is now fueling this greed among companies, allowing them to raise prices across the board, regardless of whether goods truly need to be subject to tariffs.”

Warren said that Powell also raised this possibility at last Wednesday’s press conference, where he made it clear that Trump’s trade agenda could potentially drive up prices, even though there is considerable uncertainty regarding whether the price changes will be “transitory.”

Warren said in a letter to Lutnik: “The reversal in progress on the inflation issue is concerning. I urge you to explain how to prevent companies from raising prices under the guise of tariffs, as Chairman Powell has just warned.”