Senate Republicans are warning President Trump that it would be a big mistake to follow through on his threat to fire Federal Reserve Chair Jerome Powell, saying it would likely send a “shock wave” through the financial markets and roil the broader economy.

GOP senators, including lawmakers closely allied with Trump, warn that any move to oust Powell would jeopardize the Federal Reserve’s independence, which in turn could undermine investors’ confidence in U.S. monetary policy and creditworthiness

“I do not believe a president, any president, has the authority to fire the Federal Reserve chair,” said Sen. John Kennedy (R-La.), a member of the Senate Banking Committee, which has jurisdiction over the Fed.

“I believe strongly in the independence of the Federal Reserve. Some countries in the world don’t have independent central banks. Ask Turkey how that’s been working out for them. At one point Turkey had inflation at 30 percent,” he added.

Kennedy said he understands Trump’s desire to see interest rates lowered to energize the economy, noting that past presidents have pressed for the same thing. But he warned that slashing rates now when the U.S. debt stands at $36 trillion and inflation may be picking up could have major reverberations for the economy.

“If you cut interest rates right now by 300 basis points or 3 percent it would crash the stock market, you would see bond prices take a journey to the center of the Earth, you would see the 10-year Treasury go up at least 50, probably 100 basis points, which makes it harder to issue new Treasurys,” he warned.

Kennedy warned that if firing Powell backfires and causes the interest on Treasury bills to climb, it would cost “hundreds of billions of dollars more to service our debt.”

Sen. Thom Tillis (R-N.C.), a member of the Banking Committee, warned that firing Powell would send a “shock wave” through the economy.

“It would be a colossal mistake,” he warned.

He predicted that Trump would likely fail in his bigger goal of getting the Fed to lower rates because the central bank operates largely by consensus and has 12 voting members, including the seven members of the board of governors, the president of the New York Federal Reserve, and four members of regional reserve banks who serve on a rotation.

“Anybody out there in voter-land who thinks that firing Jay Powell will change the policy outcomes … I don’t think it will,” he said.

“What it will do is send a shock wave through the markets about maybe there’s a real threat to the independence of the Fed,” Tillis warned. “That will create second- and third-order effects that none of us who track markets want to see.”

Sen. Mike Rounds (R-S.D.), who also sits on the Banking Committee, echoed his colleagues’ warnings that firing Powell would send “shock waves” through the financial markets.

“I think, long term, the markets watch very carefully the independence of the Federal Reserve,” Rounds said.

He said he would not support firing Powell.

“If you’re challenging the independence of the Federal Reserve Board, I think that would send shock waves through the market,” he said.

Rounds said he doesn’t think Trump would fire Powell but is instead “lobbying him to get a rate reduction.”

The stock market bounced up and down like a yo-yo Wednesday amid conflicting stories about whether Trump was poised to oust the Fed chair.

Powell’s term as chair is scheduled to end in May 2026, and his term as a member of the Fed’s board of governors ends in 2028.

Sen. Kevin Cramer (R-N.D.), another member of the Senate Banking panel, warned “the disruption” caused by firing Powell “is probably not worth it.”

But Cramer cautioned that while the Fed should maintain its independence, that doesn’t mean it should ignore what the president and members of Congress want to see in its monetary policy to keep the economy humming.

Cramer said Treasury Department Secretary Scott Bessent and Kevin Hassett, Trump’s director of the National Economic Council, would be “fine” as replacements for Powell.

Trump waved around a draft of a dismissal letter for Powell at a meeting with about a dozen House Republicans in the Oval Office on Tuesday night, polling the attendees on whether he should drop the axe on the embattled Fed chair, according to a report in The New York Times.

Trump then backed away from the threat Wednesday, telling reporters at the White House: “We’re not planning on doing anything.”

But he didn’t take the option off the table.

“I don’t rule out anything, but I think it’s highly unlikely. Unless he has to leave for fraud,” he said.

Trump’s budget director, Russell Vought, sent a letter to Powell last week informing the Fed chair that the president is “extremely troubled” by his management of the Federal Reserve System and undertaking of “an ostentatious overhaul of your Washington, DC, headquarters.”

The letter pointed to $700 million in cost overruns and plans for rooftop terrace gardens, VIP private dining rooms and elevators, water features and premium marble.

Vought said Powell’s testimony before the Senate Banking Committee “raises serious questions” about the project’s compliance with the National Capital Planning Act.

The Supreme Court has indicated it would likely rule that Trump does not have the authority to fire the Fed chair because of a policy disagreement but could do so on the grounds of misconduct or fraud.

White House trade adviser Peter Navarro added to the administration’s pile-on Wednesday when he declared at the Hill Nation Summit that Powell is the “worst Fed chair in history.”

“All I want is a Fed chair who understands how economies work, and Powell ain’t that,” he said. “We’re in the endgame now for Powell.”

Some Trump allies view Fed rate cuts as something that would go a long way in offsetting any slowdown in economic activity caused by Trump’s threat to impose higher tariffs on trading partners such as Canada and the European Union next month.

But Speaker Mike Johnson (R-La.), speaking to reporters at the Capitol on Wednesday, said he’s “not sure” if Trump has the authority to fire the Fed chair.

“Can the president fire Jerome Powell? I’m really not sure,” Johnson, a former constitutional lawyer, told reporters. “I have been not happy with the leadership there, personally. But I’m honestly not sure whether that executive authority exists. I’d have to look at that.”

Mike Lillis and Al Weaver contributed.