It was Donald Trump who, back in 2017, stood in the White House Rose Garden and introduced his pick for Federal Reserve chair as a “wise steward of the economy.” But the relationship between Trump and Jerome Powell quickly soured, culminating this week with Trump floating the idea of firing Powell—before saying on Wednesday that he was unlikely to do so.
During a brief exchange with reporters on Wednesday, Trump said, “I don’t rule out anything, but it’s highly unlikely [that I’ll fire him]—unless he has to leave for fraud,” after several reports revealed that he had asked Republican lawmakers whether he should oust Powell. Markets reacted swiftly: the dollar weakened, Treasury yields rose, and stocks fell to a two-week low, prompting Trump to quickly walk back his comments.
For Trump, the alliance between himself and “Jay” — as he called Powell during the 2017 Rose Garden…
