Low rates can also inflate financial markets. Investors, unable to generate strong returns in safe assets, such as short-term Treasury notes, will move into progressively higher-risk assets, where returns are higher, but so is the danger of steep losses.

The president keeps threatening to fire Jerome Powell. There are reasons beyond market reaction why he might regret following through.

President Trump asked Republican lawmakers how they felt about firing Fed Chairman Jerome Powell and they expressed approval for the firing, the people said. It remains to be seen if Trump will follow through on the threat.