Bessent emphasizes that Trump intends to keep Fed Chair Powell in his position: ‘He’s mentioned that many times.’

Implications of Trump’s Relationship with Federal Reserve Chairman

Treasury Secretary Scott Bescent recently claimed that President Donald Trump doesn’t plan to fire Federal Reserve Chairman Jerome Powell. This statement comes amidst speculation in the media suggesting Trump might seek to dismiss Powell.

During an interview on MSNBC’s Morning Joe, Bescent was asked whether Trump’s decision to let Powell finish his term was a move to “provide stability to the market.” He dismissed the idea, pointing out that Trump has consistently stated he won’t fire Powell.

“I don’t know where that question came from because President Trump has repeatedly said he’s not going to fire Speaker Powell,” Bescent explained. “He may want him to resign, but he’s not going to fire him. He’s said it many times. He may have said it again yesterday.”

It’s worth noting that the Supreme Court’s May 2025 ruling affirmed the unique protection of the Federal Reserve. The decision suggested that the president’s power to remove officials, as confirmed in previous cases, does not extend to the Fed Chairman.

“I think he’s doing a bad job, but he’s going out soon anyway. He’s going out in eight months,” Trump remarked.

Bescent also addressed the ongoing calls for the Fed to lower interest rates, indicating that pressures from different fronts are a normal part of the role of the Fed Chair.

“I think anyone who participates in public services should put pressure on them. We’re under pressure from the president, Congress, and from the constituents,” he stated.

This discussion follows reports from CBS News, indicating that Trump mentioned potentially firing Powell during a private meeting with Republican lawmakers. Reportedly, when he asked for their opinions, many suggested he should go ahead with it.

“I told them about the concept of firing him. I said, ‘What do you think?’ Most of them said I should,” Trump shared.

However, just a day later, Trump remarked to the press that it was “highly unlikely” he would remove Powell unless there was evidence proving misconduct.

In related news, Russ Vert, the director of the Office of Business and Budget, recently reached out to Powell accusing the Fed of overseeing an “exaggerated” renovation project, potentially infringing on the law. Powell rebutted this characterization last month during Senate testimony, labeling certain representations of the renovation efforts as “misleading and inaccurate.”