Powell’s Fed is backed into a bit of a corner. Its dual mandate is low unemployment and inflation, two often competing goals. Raising interest rates can slow inflation but increase job losses, while cutting interest rates can increase hiring but risk faster inflation.

Most legal scholars agree that Trump can’t fire Powell from the Fed’s board of governors, and there is no legal precedent for doing so. However, there is less agreement over whether a president can remove him as chair.

Investors prepared for another week of developments on President Trump's fast-moving tariff policies and for the kickoff of Big Tech earnings reports.