How stocks could tumble if Fed chair Powell is fired

What they're saying: "It will be several orders of magnitude worse, should the White House ever truly move to fire Powell," Joe Brusuelas, chief economist at RSM US, tells Axios.

• Firing the central bank chief sets the stage "for further diversification away from dollar denominated assets," Brusuelas later added in a note.

Between the lines: Stocks are dollar-denominated assets.

• While stocks recovered their losses Wednesday, the dollar did not.
• This could be an indication that investors are temporarily OK with the risk/reward profile of equities, but they're gradually moving away from the dollar.
• Over time, that alone could be a drag on equities.

What we're watching: The market's swift rebound mirrors a vibe that crosses conversations with sources: Wall Street sentiment surrounding a potential Powell ousting appears to be shifting.

• Mohamed El-Erian, Queens' College president and former Pimco CEO, posted about whether Powell is exposing the central bank to threats by staying in the post within a hostile administration.
• The TACO trade could be shifting to the Trump-is-right trade, a narrative that would be bolstered by market resilience in the face of a Fed chair ousting.