President Trump has backed off of his threats to fire Federal Reserve Chair Jerome Powell — for now.

The president appeared to reach a breaking point with Powell last week when he told Republican lawmakers he would likely be nixing the Fed chair soon. But he has since backed off, while officials and outside voices have warned about such a move's impacts to the markets.

Much like he does with his tariff threats — which has created the concept of the Wall Street TACO trade, an acronym that stands for “Trump Always Chickens Out”— he floated the idea of forcing Powell out, and then pulled back.

“This is kind of like after the ‘liberation day’ … when there was a critical moment for the impact of capital markets, the stock market, the bond market, [Treasury Secretary] Scott Bessent saying to the president, 'Hey, we got to get a hold of this.’ I think that Jerome Powell thing is the same,” a source close to the White House said.

Trump indicated to Republicans during a meeting in the Oval Office that he plans to fire Powell, a senior White House official told The Hill, and markets quickly dipped, with the S&P 500 falling into the red. He said later that day it is “highly unlikely,” but he doesn’t “rule out anything.”

Some experts have since warned not to jump in on the Fed chair while legal scholars don’t believe Trump has the authority to even oust Powell unilaterally.

“The Fed independence is what gives America its position as the No. 1 place to invest on Earth. So, it would be very, very difficult to have presidents firing Feds. That would not be taken well by the markets,........

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