President Donald Trump acknowledged that he has discussed removing Federal Reserve Chair Jerome Powell but said doing so would “disrupt the markets” and is “highly unlikely” unless evidence of fraud emerges. The remark follows reports that the White House had weighed firing the central-bank chief, an unprecedented step that would test the legal protections intended to shield monetary policy from political pressure. The prospect briefly rattled financial markets on Wednesday. Prediction markets put the likelihood of Powell leaving before year-end as high as 38% before retreating after Trump’s clarification. During the hour-long scare, the 10-year Treasury yield climbed about five basis points, 30-year yields added roughly 11 basis points, two-year yields fell around five basis points and the euro strengthened 1.4% against the dollar. U.S. equities later steadied, with S&P 500 futures unchanged, Dow futures down 0.2% and Nasdaq futures up 0.1% ahead of Thursday’s open. Analysts warn that dismissing Powell could undermine the Federal Reserve’s independence and reshape global asset pricing. ING projects that if a more accommodative successor were installed, two-year Treasury yields could drop below 3% while 10-year yields surge past 5%, steepening the curve to levels last seen in the 1990s. The bank also anticipates prolonged dollar weakness and heightened volatility in emerging-market currencies. Powell’s four-year term as chair expires in May 2026, and Federal Reserve governors can be removed only “for cause.” No U.S. president has ever fired a Fed chair, leaving uncertain how courts and Congress would respond should Trump attempt to follow through.