Jerome Powell

Report: White House considered "legality of demoting" Fed Chair

This image is a two-way splitscreen between Powell and Trump.
Jerome Powell and President Trump. Photos: Scott Olson/Getty Images and Alex Wong/Getty Images

The White House considered the "legality of demoting" Federal Reserve Chair Jerome Powell in February, Bloomberg reported on Thursday.

The big picture: This, according to anonymous sources, reportedly took place after Trump discussed firing Powell last year following frustrations with the central bank's interest rate increases, per another Bloomberg scoop. Toward the end of 2018, Trump briefly mused about whether he could replace Powell with Kevin Warsh, a former Fed governor and aide to President George W. Bush.

Markets look for confirmation of Fed's policy easing

Federal Reserve Board Chairman Jerome Powell walks up to speak during a news conference. Photo: Mark Wilson/Getty Images
Federal Reserve Board Chairman Jerome Powell walks up to speak during a news conference. Photo: Mark Wilson/Getty Images

The market has stopped paying much attention to Fed Chair Jerome Powell's long-range forecasts and the Fed's future guidance and will merely be looking for confirmation of its expectations at this week's Fed meeting.

The state of play: Markets are now looking to data — including the value of the stock market — rather than central bank predictions as the road map for policy.