Trump weighed ousting Powell in 2018, but the Fed chief told then-Treasury Secretary Steven Mnuchin that he would fight his removal, according to the Wall Street Journal.

Speculation arises over Trump's ability to fire Fed chief Powell, highlighting the Fed's independence from presidential influence.

In what's been an eventful week, traders are now turning their focus on the Federal Reserve. Policymakers are expected to trim interest rates by a quarter point from the current target range of 4.75%-5.0%. The Fed will issue its rate decision at 2 p.m. Eastern on Thursday, followed by Chair Jerome Powell's press conference at 2:30 p.m.

Jerome Powell was prepared to go to court when the president floated his dismissal six years ago. If it happens again, the Fed chair might have to pay the legal tab himself.

Jerome Powell has made it clear that if President Donald Trump attempts to fire him, he’ll sue. He’s said it once, he’s said it a hundred times: The Federal Reserve’s chair can’t be tossed out simply because the Oval doesn’t like interest rate policy.

Many economists are already scaling back their expectations for the number and pace of Federal Reserve rate cuts next year on account of policies expected from a new Trump administration.