This past April, when President Donald Trump started flirting with the notion of firing Fed Chair Jerome Powell, stocks and the dollar tumbled because investors worried that even talking about such a move crossed a red line.

Investors are becoming more measured in their reaction to news about Trump's Washington policy, with Wednesday's whipsawing headlines over Federal Reserve Chair Jerome Powell triggering a reaction that fell short of what could happen if the Fed chair was indeed fired.

However, it never looked like markets fully priced in Powell’s exit yesterday afternoon. Pricing for a September Fed cut didn’t go beyond 20bp, and EUR/USD failed to get beyond 1.1720 even before Trump’s denial caused an unwinding of all market moves.

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There could be a revolt in global markets, including a possible collapse in the dollar and US bonds, if President Donald Trump were to take the unprecedented step of removing Federal Reserve Chair Powell from the helm of the central bank,

Sam Stein is joined by Ben Walsh to discuss Donald Trump’s threats to fire Federal Reserve Chair Jerome Powell, the market’s drastic reaction to his back and forth, and how he seems to be forgetting that it was him who originally appointed him Fed Chair.

Speculation about the fate of Federal Reserve Chair Jerome Powell set off a short-lived tempest in financial markets Wednesday, with volatility mostly quelled after President Donald Trump said he has no plans to fire the central bank chief and was only discussing it in “concept.

Markets either don't believe the White House attempts to force out the Federal Reserve chair will succeed, or they assume it's all bluster. But there's good reason to be wary of the sort of uncertainty that renewed Fed-bashing may be building under the surface.

President Donald Trump’s attacks on Federal Reserve Chairman Jerome Powell are so commonplace at this point that they barely register in financial markets these days. The rapidly intensifying multi-pronged efforts by Trump’s advisers to amplify and expand on Trump’s attacks are a good reason to rethink that indifference.

President Donald Trump said Wednesday it is “highly unlikely” he'll fire Federal Reserve Chairman Jerome Powell “unless he has to leave for fraud” — less than 24 hours after he indicated in a private meeting with Republican lawmakers that he's leaning toward doing just that.