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........

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