Consumers' inflation expectations, by some measures, are also the highest in decades. Inflation has been above the Fed's 2% target for over four years, and the prospect of a dovish Fed under the stewardship of a new Trump-friendly Chair could keep it that way.

Wall Street is hanging near its records following some better-than-expected updates on the economy and a mixed set of profit reports from big U.S. companies.

This past April, when President Donald Trump started flirting with the notion of firing Fed Chair Jerome Powell, stocks and the dollar tumbled because investors worried that even talking about such a move crossed a red line.

A healthy crop of earnings helped European stocks bust out of a four-day losing streak on Thursday, Wall Street was watching Netflix and the dollar bounced after U.S. President Donald Trump quashed talk he was about to fire Fed head Jerome Powell.

The Nasdaq rose to a record high on Thursday, leading a cautious climb across Wall Street's major indices, as strong economic data lifted spirits and airline stocks took off on United Airlines' results.

What Happened in Markets Today The debate on the Fed continued. Former Federal Reserve governor Kevin Warsh, a potential nominee to succeed Fed Chair Jerome Powell, said on CNBC that the Fed should stay independent.

Wall Street's main indexes rose slightly, buoyed by strong results from PepsiCo and positive economic data. Retail sales exceeded expectations and job growth remained steady. Despite potential tariff impacts,

Early trading on Wall Street was quietly mixed as markets shift their attention toward a deluge of corporate earnings reports.

Many on Wall Street have privately worried that political pressure will undermine the Federal Reserve’s credibility.

Wall Street watches the major averages whipsaw on Wednesday, following a softer-than-anticipated wholesale inflation report and news that President Trump indicated that he will fire Fed Chairman Jerome Powell.