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."

Markets either don't believe the White House attempts to force out the Federal Reserve chair will succeed, or they assume it's all bluster. But there's good reason to be wary of the sort of uncertainty that renewed Fed-bashing may be building under the surface.

A growing financial storm could hit the US dollar and Treasuries if President Donald Trump removes Federal Reserve Chair Jerome Powell from his post. According to Deutsche Bank, this scenario is being severely mispriced by the market,

Potential removal of Fed Chair Jerome Powell could disrupt markets, spike inflation expectations, and impact the USD and bonds.

President Donald Trump’s attacks on Federal Reserve Chair Jerome Powell are so commonplace at this point that they barely register in financial markets these days. The rapidly intensifying multi-pronged efforts by Trump’s advisers to amplify and expand on Trump’s attacks are a good reason to rethink that indifference.

The debate over how and when the tariffs will affect prices has divided central bank policymakers over the trajectory for interest rates.

Judging by the market's reaction on Wednesday, Powell has cleared the way for the broad rally that emerged in July to continue. "I would say his comments were positive for the rate-cut camp, ...

"We do not seek or welcome further cooling in labor market conditions," Powell said. The S&P 500 surged about 1% to 5,640, less than a half-percent below its all-time intraday high of 5,669, while ...

US stocks slipped Wednesday to close mixed as Fed chair Powell testifies to Congress for a second day and Tesla's stock falls.