Analysis: If Trump challenges the Federal Reserve, Powell will have the upper hand

During Trump's campaign, he said he should be consulted on the Fed's interest-rate decisions. Fed Chair Jerome Powell did not ignore these remarks, and he made it clear that he would not resign if Trump asked him to do so - on the grounds that the president does not have the legal authority to remove him from office. These developments set the stage for a confrontation between the Fed and the incoming president, and TS Lombard economist Dario Perkins believes Powell will have the upper hand.
"Now that we face a larger confrontation between populists and bond vigilantes, many expect a clash between Trump and Powell," Mr. Perkins wrote. "If Trump challenges the Fed, it is conceivable that Powell may'weaponize 'the bond market to teach Trump a lesson."