A brief glimpse of a post-Powell world

Yesterday’s reports that President Trump is considering firing Fed Chair Powell imminently were quickly denied and most key market prices have reverted to roughly where they were before the news broke. But the sharp price swings in the hour or so between the initial press reports and the president’s comments provide the clearest picture yet as to what might transpire if a serious attempt were made to remove Powell before the end of his term. Long story short, it’s not a pretty picture.