| Donald Trump can’t get Jerome Powell off his mind. The president and his allies have ratcheted pressure on the Federal Reserve chair to new levels of intensity this week — whipsawing markets with a barrage of attacks and allegations, including what looked like the most credible threat so far to Powell’s job. It began to take shape late Tuesday when Trump held court with GOP lawmakers and polled them on whether he should fire Powell — a kind of third rail that he’s repeatedly wandered toward, always stopping short. Lawmakers expressed support, and today Trump was said to be preparing to follow through — even though his authority to do so is questionable. Then he appeared to take a step back, telling reporters it was “highly unlikely” Powell would be axed – “unless he has to leave for fraud.” That’s the new front that team Trump has opened in their long campaign against the Fed chief, who’s guilty in their eyes of keeping interest rates too high. Now they’re attacking him over the central bank’s building renovation, arguing it’s too opulent and way over-budget. Trump suggested Wednesday this could amount to grounds for removal. Allies like Federal Housing Finance Agency Director Bill Pulte have relentlessly pushed Powell to quit over the issue. The Fed chief has called reports about the renovations inaccurate, and asked the bank’s inspector-general to review the project.  Trump speaks at the White House on Wednesday Photographer: Aaron Schwartz/CNP “The entire purpose of the renovation `scandal’,” writes Tobin Marcus at Wolfe Research, “is to create a predicate to fire Powell if Trump wants to.” The president — who today wondered aloud how Powell got the job in the first place (Trump appointed him) — certainly sounds like he wants to. But it’s less clear if he will. Anna Wong at Bloomberg Economics suggests Trump might have been floating a trial balloon to see how markets reacted. She concludes the dollar’s rapid drop was big enough to deter him. (Terminal readers can see her analysis here). Meantime — since Powell’s term ends in May even if he escapes Trump’s axe — the horserace to succeed him is heating up. Kevin Hassett, director of Trump’s National Economic Council, is the early frontrunner ahead of former Fed governor Kevin Warsh, my colleagues Nancy Cook and Catarina Saraiva report. The question isn't if Trump will get a new Fed chair, but when. The answer shifts by the hour. | 
