• Trump criticized Fed Chair Powell for high interest rates and a costly renovation project.
• Mixed signals about Powell's dismissal were sent during a meeting with Republican lawmakers.
• Market reactions included volatility in stocks and Treasury yields amid firing rumors.
• Experts argue Trump lacks legal grounds to dismiss Powell without evidence of misconduct.
• Fed officials assert that Powell's decisions are based on data and independent from political pressures.

US President Donald Trump has intensified his attacks on Federal Reserve Chair Jerome Powell, labeling him as “one of my worst appointments.” Trump's ire stems primarily from Powell's refusal to lower interest rates, a vital issue for Trump as he aims to boost economic growth. During a recent meeting, Trump discussed the possibility of firing Powell with Republican lawmakers, indicating that most supported this move, which briefly rattled financial markets, according to SCMP and India Times.

Trump's criticisms revolve around Powell's handling of a $2.5 billion renovation project at the Fed's headquarters, which has drawn scrutiny for significant cost overruns. In a striking statement, Trump suggested there might be “fraud” involved in the management of the project, prompting Powell to rebut claims about luxury features being included in the renovation, as detailed by The Hill and HuffPost.

Despite criticisms, Trump clarified that he currently has no plans to fire Powell, stating it is “highly unlikely” unless issues of fraud materialize. Trump reiterated that he had raised the subject of Powell’s potential firing during discussions, which makes evident the tension between his administration and the central bank, as reported by Channel News Asia and India Times.

Elected officials and financial analysts express concern that firing the Fed chair could trigger significant instability in the markets. Senator Thom Tillis warned that such an action would undermine the Fed's independence and potentially lead to immediate market reactions, as noted by ABC News and CBS News.

On the legal front, experts express skepticism about Trump’s ability to remove Powell, suggesting any dismissal would require substantial evidence of misconduct as defined by federal law. The potential legal battle over such an attempt could echo through the courts, as indicated by commentators like Peter Conti-Brown, emphasizing the unprecedented nature of this potential firing, according to Al Jazeera and Channel News Asia.