Former President Donald Trump has intensified his criticism of Federal Reserve Chair Jerome Powell and hinted at removing him, coinciding with a Supreme Court case that could make it easier for presidents to fire heads of independent agencies.

Axar.az, citing AP, reports that economists and investors worry that undermining the Fed’s independence could destabilize markets and the economy.

The Federal Reserve plays a critical role in managing inflation and employment through interest rate decisions.

Historically, its independence has been seen as essential for making tough but necessary economic choices without political influence—an idea reinforced by past events like the inflation crisis of the 1970s.

Most investors prefer a politically independent Fed, as it ensures more predictable policy decisions. Although the president appoints Fed members, including the chair, they cannot currently be removed without cause.

However, a pending Supreme Court ruling could change this precedent.

While Trump appointed Powell, legal experts disagree on whether he can fire him as chair. If Trump attempts to do so, it would likely lead to a major legal battle, potentially ending up at the Supreme Court.

Though the Fed has been exempted from some recent presidential authority expansions, its future independence may hinge on upcoming legal decisions.