Most legal scholars agree that Trump can’t fire Powell from the Fed’s board of governors, and there is no legal precedent for doing so. However, there is less agreement over whether a president can remove him as chair.

Stocks were holding onto sizable gains Wednesday as many investors cheered the possibility trade talks between the United States might at least start. At the same time, President Trump's announcement he wouldn't try to remove Federal Reserve Chairman Jerome Powell cheered the market,

President Trump, speaking to reporters Tuesday, said he hoped Powell would cut interest rates soon but that he never planned to fire the central banker.