Will Trump end the Federal Reserve?
Assessing the market impact of a potential Fed shutdown under President Trump
Market Overview
The question is simple but massive: will President Trump actually end the Federal Reserve? This market is betting on the possibility of the most dramatic change in how America runs its economy since ditching the Gold Standard. Read more below.
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Power Shifts & Critical Developments
Trump’s America First movement is focused on tearing down any barriers to executive power, and the Federal Reserve stands at the top of the list. Trump has made it personal with Jerome Powell, and his inner circle has been clear: they want the president firmly in the driver’s seat, with minimal pushback from so‑called “independent” agencies. The plan is spelled out in Project 2025, which lays out aggressive steps for putting the White House back in control of the federal government .
But let’s be real. Killing the Federal Reserve is a whole different game than writing up executive orders. Congress created the Fed back in 1913. Any attempt to get rid of it would take passing major legislation - something that’s recently never been close to happening.
To abolish the Fed, you’d need both the House and Senate to sign on, along with a president ready to fight a war in the headlines, on Wall Street, and inside the establishment all at once. None of Trump’s MAGA loyalists have even tried to put Fed abolition on the legislative table. Even the wildest MAGA proposals - removing the Fed Chair or rewriting its marching orders - are minor league compared to scrapping the whole institution.
Trump’s recent executive orders show his true path. One order extends White House review over independent federal agencies (the Fed mostly dodged that one). Another order told agencies to follow Trump’s policies, but the Fed’s main job - setting interest rates and controlling inflation - was deliberately left out and remains off limits (at least for now). Clearly, the White House knows destroying the Fed is not on the table; the focus is on squeezing its independence, not blowing it up.
Trump’s recent meeting with Jerome Powell was pure reality TV. Trump pushed for lower rates to juice the economy; Powell didn’t budge, repeating that he only acts based on the data, not politics. Despite MAGA talking points, everyone who knows the law understands: firing the Fed Chair would start a legal and political fight that drags out for years, with Congress and the courts getting involved.
Counterarguments & Rebuttals
Some argue Trump’s moves (like Project 2025 and open threats) mean he’s serious about destroying the Fed. But shouting and bullying agencies isn’t the same as burning down the entire central bank. Trump’s team knows that killing the Fed would set off chaos - skyrocketing inflation, collapsing markets, a worldwide loss of faith in U.S. money - and would almost certainly get crushed in the Senate even if the House tried to help.
Others say Trump’s new Supreme Court majority will back any takeover of the Fed. The reality: the Court might go along if Trump wants to fire Powell for “cause” or put more White House control over banking regulations. But total abolition of the Federal Reserve isn’t even in the cards. Legal obstacles, massive pushback in Congress, and the risk of tanking markets would shut that down fast. If Trump wants control, it’ll be through picking personnel and constant pressure - not abolishing the Fed by law.
Finally, some claim MAGA populists are ready to blow up the system if blocked. Not happening. Even with the nationalist surge, nobody with power on Wall Street, big GOP donors, or key Republican Senators wants the Fed gone. The most likely outcome is a rough brawl over the Fed’s leadership or regulatory power - not its outright disappearance.
Strategic Recommendation: ✅
NO at 90¢. This is an expensive investment with a low return. However, even if Trump has total political control, pulling the plug on the Federal Reserve before January 20, 2029, isn’t going to happen.
All the real moves point to hassling the Fed with executive orders and picking fights over control, not erasing it from the books. Unless Congress suddenly lines up behind abolition, this is a fantasy. Stay on the NO side; if “NO” dips below 85¢ on a wild headline, use that as a re-entry point.