Analysts at Deutsche Bank consider the president's removal of Fed chief Jerome Powell "one of the largest under-priced event risks over the coming months."

Trump’s attacks on Powell and the Fed more generally are damaging, say experts, because investors expect the Fed to operate independently of political interference. The Fed should be setting monetary policy based on the needs of the economy, not on what’s politically expedient for those in power now.

The central bank is poised to hold interest rates steady this month, but there could be a path to cut as early as September.