He knows more about economics than anybody

President Donald Trump has discussed firing Federal Reserve Chairman Jerome Powell as his frustration with the central bank chief intensified following this week’s interest-rate increase and months of stock-market losses, according to four people familiar with the matter.

  Bloomberg

Of course he has. Firing people is his favorite passtime.

Any attempt by Trump to push out Powell would have potentially devastating ripple effects across financial markets, undermining investors’ confidence in the central bank’s ability to shepherd the economy without political interference. It would come as markets have plummeted in recent weeks, with the major stock indexes already down sharply for the year.

[...]

Advisers close to Trump aren’t convinced he would move against Powell and are hoping that the president’s latest bout of anger will dissipate over the holidays, the people said on condition of anonymity. Some of Trump’s advisers have warned him that firing Powell would be a disastrous move.

All the more reason. He loves doing what people tell him not to do.

It’s unclear how much legal authority the president has to fire Powell. The Federal Reserve Act says governors may be “removed for cause by the President.”

The "cause" is stock market drops make him look bad.

Equities just recorded their worst week since 2011, with the S&P 500 falling 7.1 percent and the Nasdaq Composite descending into a bear market. Trump has laid a lot of the blame on the Fed, saying at one point in October that the central bank was “going loco” for raising rates.

[...]

Though he was nominated by the president, Powell was thought to be insulated from Trump’s dissatisfaction by a tradition of respect for the independence of the central bank.

Who thought that? Someone who didn't know Trump and was in a cave throughout the campaign season?

Even routine changes at the top of central banks create uncertainty in markets as investors try to assess how tough a new leader may be in preventing the economy from overheating and accelerating inflation. Another problem with dismissing a sitting Fed chief may be finding a replacement who wants assurance that he or she won’t succumb to the same fate as Powell.

Mulvaney will do it.

Some of Trump’s ire has been directed at Treasury Secretary Steven Mnuchin for his part in persuading the president to select Powell to lead the Fed.

He has plenty of blame to go around, but what happened to his claims that he makes all his own decisions because his gut is smarter than other people's brains?

...but hey, do what you want...you will anyway.

UPDATE: