'Check on his instincts': Experts say one thing could keep Trump under control
Federal Reserve Chairman Jerome Powell made it clear to the press that if Donald Trump fired him, he wouldn't leave. While that could force a head-to-head conflict, Powell could also keep Trump in check.
Experts told Politico they think Powell could control Trump. That's something that no other person has accomplished, according to former Homeland Security adviser Olivia Troye — and even Trump himself.
If there's one thing Trump loves, it's a high stock market, and the last time he tried to threaten to fire Powell in December 2018, the market wasn't happy about it.
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"Markets were already panicky about trade wars and slowing growth, as well as uncertainty around the Fed’s moves, and reports that Trump might try to remove the central bank head made it much worse," the report said.
"But the uncertainty still led to one of the worst pre-pandemic days for stocks during Trump’s presidency," Politico said, citing data on the benchmark Russell 3000 index.
Brian Gardner, who tracks Washington for the financial firm Stifel, thinks the markets will "be a bit of a check" on Trump.
“The markets will not like interference by any administration, and once Trump sets the precedent, then every other subsequent administration is going to feel emboldened to walk through that door," he said.
The report recalled that in 2020, Powell "played a central role in avoiding a financial crisis" as the world shut down for a global pandemic. Markets turned around after taking the largest nosedive in history.
“I have been critical, but in many ways I call him my ‘MIP,’” Trump told reporters in May 2020. “Do you know what an MIP is? Most improved player. It’s called the Most Improved Player award.”