If President Donald Trump were to fire Federal Reserve Chair Jerome Powell, it could have unintended and severe consequences that reverberate throughout the US economy and global markets.

Three things can simultaneously be true: that it would be reasonable for the Federal Reserve to cut interest rates; that its headquarters renovation is too expensive; and that the Trump administration's attacks show why central banks are designed to be independent in the first place.

The Fed is self-funding and doesn’t need outside approval for building projects, according to the law that created the central bank.