Wealth manager Ross Gerber issued a warning to the markets in a brief post on X, following President Donald Trump’s latest attack on the Federal Reserve’s autonomy.

What Happened: On Monday, the CEO of Gerber Kawasaki, Ross Gerber, posted on X, expressing hope that Federal Reserve Chair Jerome Powell would defend the central bank's independence amid escalating attacks from Trump.

Gerber warns that if Powell resigns, the markets that are already under pressure will spiral further into a prolonged downturn, from where he finds it hard to “imagine escaping the bear.”

This comes hours after CNBC host Jim Cramer raised similar concerns on X, saying that forcing Powell out would lead the S&P to downgrade American debt.

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Both Gerber and Jim Cramer voiced their concerns after Trump took aim at Powell on Truth Social, calling for a preemptive rate cut and labeling the Fed chair "Mr. Too Late" and a "major loser," while rattling the markets in the process.

Why It Matters: Back in November, Powell dismissed speculations about stepping down, stating that the president "cannot fire the central banker." When asked if he would resign if pressured, he responded clearly: "No."

If Powell were to be fired, Michael Brown, a senior research strategist at PepperStone Group Limited, says, “the initial reaction would be a huge injection of volatility into financial markets, and the most dramatic rush to the exit from U.S. assets,” to MarketWatch.

Read More:

• Speculators Ramp Up Bets On Who Will Succeed Fed Chair Powell As Trump’s Pressure Campaign Intensifies

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