BlockBeats News, April 23: President Trump's public criticism of Federal Reserve Chair Powell has heightened concerns that he is attempting to dismiss the central bank chief. However, even if he takes this historically significant and legally contentious action, Trump may still not be able to steer monetary policy in the direction he desires.

Several economists have stated that even if Powell is fired, it may not necessarily lead to the interest rate cuts Trump wants. Paul Ashworth, Chief North American Economist at Capital Economics, noted in a recent report, "Firing Powell is likely just the first step in undermining the Fed's independence. If Trump is determined to lower rates, he would also have to dismiss the other six members of the Fed's Board of Governors, leading to more severe market turmoil, a weaker dollar, and a steepening of the yield curve."

Powell serves as both the Chair of the Federal Reserve Board and the Chair of the Federal Open Market Committee (FOMC) responsible for rate-setting. Ashworth pointed out that while FOMC members typically defer to the Chair appointed by the President to lead them, they could also resist Trump's wishes and choose someone else to head the rate-setting committee.

In a social media post on Monday, Trump referred to the Fed Chair as a "major failed" which shook the financial markets. White House economic adviser Kevin Hassett said last week that the President and his team are exploring the possibility of removing the Fed Chair. However, on Tuesday, Trump backtracked, saying he has "doubts" about firing Powell.