London —

Federal Reserve Chair Jerome Powell’s comments at Jackson Hole Friday hinting at the possibility of an upcoming interest rate cut should have been music to President Donald Trump’s ears.

Yet days after Powell delivered one of the most important speeches in the financial calendar, the Fed chair was digesting news of the latest twist in a simmering battle between the central bank and the Trump administration, as the president said he was firing one of its governors , Lisa Cook.

The first-ever attempt to fire a Fed governor, alongside Trump’s public hammering on Powell, represents clear threats to the 111-year-old central bank’s independence not seen since the Nixon administration. Investors are speculating on how far Trump might go, what might result from an ensuing legal f

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