Stocks, the dollar and long-term US government bonds quickly retreated, while short-term Treasuries rallied on speculation that whomever Trump appoints to replace Powell will bend to the president’s will and cut interest rates. Yet in less than an hour, the moves unwound after the president downplayed the possibility, saying he was “not planning” to fire Powell, someone he’s been lobbing almost daily criticisms at for moving too slow.
Once again, President Donald Trump demonstrated his power to shake up global financial markets. This time, by returning to one of his favorite topics: whether to fire Federal Reserve Chair Jerome Powell.
In an echo of the havoc that Trump unleashed with his trade war in early April, markets were briefly turned upside-down on Wednesday after a White House official said the president was likely to soon remove Powell.
