President Trump has lashed out at Jerome Powell, labeling him a "major loser" and pushing for quick interest rate cuts.

Jerome Powell has led the Federal Reserve since 2018, initially appointed by Trump himself. Though they had differences, Trump never sought to dismiss Powell before, but now pressures mount as he questions Powell's grip on monetary policy.

Trump's criticisms have ignited discussions on whether he can legally remove Powell. The Federal Reserve Act only allows dismissal for serious misconduct, leading Powell to assert that arbitrary termination isn't allowed under existing law.

Financial markets reacted sharply to Trump's remarks, with the Dow falling dramatically. Investor confidence wavered, reflecting fears that political interference could derail the crucial independence of the Federal Reserve's decisions.

Political issues surrounding the Fed can lead to higher borrowing costs and slow economic growth. Investors worry that ongoing tensions may lead to stagflation—a troubling combination of rising inflation and stagnant growth.

The dispute resonates beyond U.S. borders, potentially downgrading the dollar as a safe haven. Any perceived instability at the Federal Reserve could spark concerns for international investors and affect global economic relations.

As questions linger over Trump's potential actions against Powell, the ongoing legal, political, and economic implications will shape the future. The outcome could redefine the Federal Reserve's role and stability in both the U.S.