Trump's remarks come amidst wider concerns regarding his increasing interference in a vital independent financial institution, potentially affecting the stability of the financial system which is already grappling with his trade policies.

The president reaffirmed his discontent with Powell and hinted that while firing him might be "highly unlikely," it remains an open conversation, reflecting ongoing tensions between the White House and the Fed.

Powell, who was originally nominated by Trump, remains adamant about serving his full term until May next year, emphasizing that he is not resigning due to policy disagreements. With the economy showing signs of stress, this situation could have profound implications for financial markets moving forward.