Sen. Elizabeth Warren (D-Mass.) has cautioned about a possible stock market collapse if President Donald Trump decides to fire Federal Reserve Chair Jerome Powell.

What Happened: Warren’s remarks were a reaction to Trump’s earlier social media post, in which he expressed his impatience for Powell’s “termination.”

“Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now. Powell's termination cannot come fast enough!” Trump wrote in his post.

During her speech at the New York Stock Exchange, Warren voiced her apprehensions about the potential repercussions on the US markets if Powell were to be dismissed.

“I have tangled with him on a regular basis about both regulations and interest rates. But understand this: If Chairman Powell can be fired by the president of the United States, it will crash markets in the United States,” Warren said of Powell at the New York Stock Exchange.

Warren also underscored the importance of the Federal Reserve’s independence for the stability of the US and global economy. She expressed her doubts about the legality of Trump’s potential action to remove Powell.

“If interest rates in the United States are subject to a president who just wants to wave his magic wand, this doesn’t distinguish us from any other two-bit dictatorship around the world,” she added and as quoted by Insider.

Trump’s disapproval of Powell, especially regarding interest-rate cuts, has been a persistent issue. However, Powell has consistently maintained that he cannot be legally dismissed by the president.

The Supreme Court is set to deliver a verdict later this year on the legality of Trump’s recent dismissals of board members of independent agencies.

Why It Matters: The potential dismissal of Powell by Trump could lead to significant instability in the US and global markets. The Federal Reserve’s independence is a critical factor in maintaining economic stability, and any threat to this independence could have far-reaching implications.

The upcoming Supreme Court ruling on the legality of Trump’s recent dismissals of board members of independent agencies could set a precedent for the future of the Federal Reserve and its leadership.