Donald Trump’s second term has begun with a renewed determination to curb the Federal Reserve’s treasured autonomy. Jerome Powell’s response so far: trying to draw a sharp line around monetary policy independence,

The de-escalation drew an immediate thumbs up from Wall Street, as equity index futures jumped by nearly 2% on the resumption of trading on Tuesday evening.

Federal Reserve Chair Jerome Powell’s firing likely isn’t imminent. But scapegoating Powell for an economic downturn could be, with troubling consequences.