President Donald Trump indicated he is likely to fire Federal Reserve Chairman Jerome Powell, a White House official said, a dramatic step that would launch a legal battle over control of the central bank and could roil financial markets.

Trump told a group of Republican lawmakers visiting the White House Tuesday evening that he was likely to fire Powell, the White House official said. Trump asked them whether they thought he should fire the Fed chairman, and they expressed approval.

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The news of Trump’s remarks Wednesday morning led to an immediate drop in stocks and the dollar. Shortly afterward, though, Trump downplayed the possibility of firing Powell.

“He’s doing a lousy job, but no, I’m not talking about that,” Trump said in comments to the press in the Oval Office after being asked about firing Powell. “Fortunately, we get to make a change in the next, what, eight months, and we’ll pick somebody that’s good.”

Trump said he hasn’t ruled out such a move but that it was “highly unlikely,” unless Powell had to leave because of fraud related to renovations of the Fed’s Washington, D.C., headquarters.

In recent days, Trump officials have criticized Powell for cost overruns from the project, with some suggesting it gives Trump cause to fire Powell.

Under the law, the Fed chairman can be fired only for cause.

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A firing would follow months of attacks against Powell and his leadership at the Fed from Trump and Trump administration officials, particularly over the Fed’s decision to hold interest rates high rather than cut them.

This story is breaking and will be updated.