The Financial Post reports in its Saturday, July 19, edition that firing Federal Reserve chairman Jerome Powell, as President Donald Trump has threatened to do, could have broad implications for the global economy, the independence of the central bank and the bond market. The Post's Jordan Gowling writes that Capital Economics analysts say in a note: "What matters more to bond markets is the direction of travel when it comes to Fed independence, especially in the context of the U.S.'s ultra-loose fiscal policy and growing concerns about fiscal dominance. Unlike raising tariffs, which can be withdrawn before the real damage is done, the reputational costs from firing Powell would be harder to undo." After Mr. Trump's threat surfaced, markets at first reacted negatively. The U.S. dollar index decreased by 1 per cent and equities dropped sharply. Swissquote Bank analyst Ipek Ozkardeskaya says, "Markets caught their breath after this initial shock, but investors remain skeptical about what comes next." Ms. Ozkardeskaya says the consequences of an attack on the Fed's independence could be dramatic, noting the loss of credibility would have serious implications for the Fed's ability to conduct monetary policy.