Geopolitics

Ousting Powell would be the most overt attempt by a modern president to interfere in the Fed’s role of setting interest rates and could tip the global economy over a cliff. It might also be the riskiest power grab yet of Trump’s expansive second term, since it would traumatize markets by obliterating an assumption that made the US the world’s most powerful economy — that presidents don’t emulate developing world dictators by cooking the books for political gain.

Trump later insisted it was “highly unlikely” he’d dismiss Powell after markets shuddered. But given his volatile nature and obvious desire to exact revenge on an official who has refused to bow to his autocratic impulses, few will take such assurances to the (central) bank.