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.

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,

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.

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.

(Reuters) -President Donald Trump on Tuesday asked Republican lawmakers if he should fire Federal Reserve Chair Jerome Powell, and several people in the room indicated he will do it, CBS News reported, citing multiple sources with direct knowledge. The meeting with members of the House of Representatives took place at the Oval Office, CBS said.

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.

The reaction in major asset classes may convince the administration that firing Powell will not prove to be a panacea for the economy and markets

Analysts at Deutsche Bank consider the president's removal of Fed chief Jerome Powell "one of the largest under-priced event risks over the coming months."

Tech led US stocks on Tuesday as a key consumer inflation print showed inflation accelerated in June, big banks kicked off earnings season, and Nvidia was set to receive a green light for trade with China from the Trump administration.

As conservative furor about Fed Chair Jerome Powell reaches a fever pitch, President Donald Trump informally polled far-right House Republicans last night on whether he should fire the central bank leader,