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“New York Times White House correspondent Maggie Haberman suggested that President Trump will be “cautious about crossing” the line with Federal Reserve Chair Jerome Powell, and that inside the White House, there is a push to prevent his ouster.” “Haberman suggests Trump will be ‘cautious about crossing’ line with Powell,” Filip Timotija , the Hill, April 19, 2025
There is no more astute observer of Donald Trump than the New York Times’ Maggie Haberman who has covered Trump both in New York and in the White House. Her book on Trump — CONFIDENCE MAN: The Making of Donald Trump and the Breaking of America is the essential work for understanding how Trump got to the White House and what motivates him.
In a recent interview, Haberman speculated that Trump would act cautiously in deciding whether to replace Jerome Powell, the chairman of the Federal Reserve Board. Haberman’s analysis here I think needs some refining. Underlining her thinking is the logic that the performance of the markets would serve as a check on Trump’s actions. In the back of the minds of many political players and reporters is the logic that Trump is sensitive to the markets because so many of his Mar-a-Lago friends have a lot to lose in the event of a recession.
In examining the Powell situation, it is helpful to examine a little bit of background. Powell was nominated as chair of the Federal Reserve by President Trump in 2018. He was nominated as a member of the Federal Reserve Board by President Obama back in 2012. Powell’s experience also includes serving as an undersecretary of the Treasury for domestic finance under President George H.W. Bush and as a legislative aide to a Republican senator. Powell’s background places him solidly in the middle of the pre-Trump Republican constituency.
Over the last several days, Trump has made it clear that he believes that Powell should lower interest rates to stimulate economic growth. President Trump late last week made it clear that he thinks he has the authority to fire Powell if he so chooses. On Monday morning, April 21, Trump used social media to vent his frustration with Powell for not lowering interest rates calling him “a major loser.”
Trump’s social media tirade against Powell set the stock market on a major downward trend dropping roughly 971 points on the Dow. At the end of trading on April 21, the stock market was on track for its worst April since 1932.
Powell’s background would in the past earn him the support of many GOP senators. However much they might support Powell in private, none of them have expressed support for Powell in the present. In Trump’s first term, a major slide like we have seen this year would have caused him to modify if not alter his course. The markets were a guardrail for Trump’s handling of the economy.
The evidence shows that Trump 2.0 is not bound by this same barrier. Despite the drop in the markets, Trump has pursued his tariff crusade. We are still headed towards a trade war. To think that firing Powell is some kind of line that Trump would not cross is to ignore what we have seen since January 20, 2025. Haberman is an outstanding reporter, and I wish I did not have to doubt her analysis that Trump would be cautious in his approach to Powell. However, the facts so far in 2025 clearly show that in his second term, Trump is not going to be cautious about anything.
Martin Burns resides with his wife Mary Liz in Washington, D.C. Most recently, he was on the campaign trail for Harris-Walz in Pennsylvanian and North Carolina. He has worked as a congressional aide, journalist, and lobbyist and is a member of the National Press Club in Washington, D.C. and a member of the National Writers Union.
