Reports indicate that in December 2018, then U.S. President Donald Trump considered removing Federal Reserve Chair Jerome Powell, sparking investor anxiety and fears of economic instability. Trump's criticisms of the Fed's interest rate policies raised concerns about the central bank's independence.
Analysts warned that Powell's removal could trigger significant market repercussions, including increased inflation expectations and higher bond yields. The potential devaluation of the U.S. dollar was also a concern.
Experts emphasized Powell's steady leadership and cautioned that even the threat of his removal sent unsettling signals to the markets. Ultimately, Powell remained in his position despite the reported considerations.