Washington. Federal Reserve Chair Jerome Powell is receiving key backing from Republican senators who fear the fallout if President Donald Trump follows through on threats to remove the politically independent central banker.

As Trump appeared to waver this week on dismissing Powell, some Republicans on Capitol Hill began to warn that such a move would be a mistake, potentially undermining the Fed’s independence and injecting uncertainty into the US economy.

“If anybody thinks it would be a good idea for the Fed to become another agency subject to the president, they’re making a huge mistake,” Sen. Thom Tillis, R-N.C., said in a floor speech.

Support from GOP members of the Senate Banking Committee underscored how traditional Republicans are navigating a presidency in which Trump frequently entertains ideas --such as steep tariffs or firing the Fed chair--that could undermine confidence in the economy.

Tillis, who recently announced he would not seek reelection after clashing with Trump, told the Associated Press that firing Powell would primarily hurt “little guys like me that grew up in trailer parks and have a few thousand dollars in a 401(k).”

He added that the Fed’s decisions on interest rates are made by a 12-member committee, not by Powell alone. Trump has expressed frustration with the Fed’s reluctance to cut rates.

“The markets expect an independent central bank,” said Sen. Mike Rounds, R-S.D. “If they thought for a minute that it wasn’t independent, it would cast a spell over the forecasts and the integrity of the decisions being made.”

However, some Republicans believe removing Powell would be justified.

“The most incompetent, worst Federal Reserve chairman in American history should resign,” said Sen. Bernie Moreno, R-Ohio.

Trump said he was encouraged to fire Powell during a meeting with far-right House members earlier this week.

House Speaker Mike Johnson, R-La., told reporters he was “unhappy with the leadership” at the Fed but admitted he was unsure whether the president has the authority to remove Powell.

House Financial Services Committee Chair French Hill has said presidents do not have the authority to fire the Fed chair but has also acknowledged Trump’s concerns about Powell’s leadership. Hill and other Republicans noted that Powell’s term as chair ends next year, allowing Trump to appoint a successor.

Congress designed the Fed over a century ago to be insulated from political pressure, stipulating that its governors and chair can only be removed “for cause.” The Trump administration has tried to meet this standard by accusing Powell of mishandling a $2.5 billion renovation project at the Fed’s headquarters.

Sen. Elizabeth Warren, D-Mass., the top Democrat on the Senate Banking Committee, criticized the move. “When Trump couldn’t bully Powell, he and Republicans suddenly decided to look into Fed building costs,” Warren said. “Give me a break.”

After Powell sent Congress details about the renovation, Banking Committee Chair Tim Scott, R-S.C., said the letter aligned with his calls for greater transparency at the Fed.

Despite these disputes, firing Powell would likely face legal challenges. “That would be litigated, and I don’t see a reason, for cause or otherwise, to remove him,” said Sen. John Kennedy, R-La.

While acknowledging Trump’s frustration with the Fed’s stance on rates, Kennedy said, “It’s very important the Federal Reserve remains independent.”

Even Moreno, who has called for Powell’s resignation, admitted it would be a painful step for the country. “That’s a decision the president will make,” he said. “But I don’t think we should put the country through any of that.”