Even Trump must know firing the chair of the Federal Reserve would be a self-defeating move

Stock markets, Treasury bonds and the dollar itself are sliding amid the tariff turmoil and Donald Trump needs a soft target. It was probably only a matter of time before he intensified his attacks on Jerome Powell, the chair of the US Federal Reserve.

- Nils Pratley

It is an easy narrative to blame the dull central banker with orthodox worries about anchoring inflation expectations. Nor is Powell able to engage in tit-for-tat soundbites. Unlike Trump, he must measure the impact on markets of his every word.

The open question is how far Trump intends to push things. Monday's reaction in financial markets was strong because it seemed for the first time that the president could be serious about removal. "Powell's termination cannot come fast enough!" declared Trump, which was several notches beyond his usual whine about urging the Fed to hurry up with cuts in interest rates.