Trump is playing with fire by attacking the Federal Reserve

Donald Trump says he did not know about the US Department of Justice’s threatened criminal prosecution of Federal Reserve chair Jerome Powell.

- CHRIS BLACKHURST

The president may have presented that as a washing of his hands - as “nothing to do with me, guv”. If so, it creates a deeply worrying scenario, in which one pillar of American government moves against another, possibly in the belief that Trump wants rid of its head. There is a “Will no one rid me of this turbulent priest?” aspect to it that is impossible to ignore.

What this shows, not for the first time, is that the Trump administration is no longer operating according to any principles of objectivity, and that it is entirely subjugated to its master, compliantly anticipating and carrying out his wishes. In some instances, that may not matter greatly. But with the Fed, Trumpian officials are playing with fire.

If there is one arena that Trump cannot control, it is the markets. They do not do emotion. They do not idolise him or anyone else, nor are they swept along in his wake. And they are not American. They’re global, unsentimental and unforgiving. Already, on the back of continuing protests in Iran and news of the probe into Powell, they have been moving against Trump. Gold and silver — safe havens in fragile times - hit record highs yesterday morning.