If President Donald Trump were to fire Federal Reserve Chair Jerome Powell, it could have unintended and severe consequences that reverberate throughout the US economy and global markets.

GBP/USD struggles to build on Wednesday's gains and trades in negative territory below 1.3400 early Thursday. The data from the UK showed that the ILO Unemployment Rate rose to 4.7% in the three months to May, while the Claimant Count Rate remained steady at 5%.

The Treasury secretary also stated his preference that Powell step down from the Fed entirely when his term ends. “Traditionally, the Fed chair also steps down as a governor."

The US dollar recovers as Powell dismissal fears recede and market yields climb after Trump's clarifying statements.

The chances of a Fed rate cut in September have spiked, driven by rising uncertainty over Jerome Powell's future. Over the last week, multiple reports

President Trump’s public demand for Powell’s resignation has ignited fears of a brewing crisis at the Fed, sending crypto investors into high alert.