TechFlow, July 20 — According to Jinti Data citing The Wall Street Journal, sources said U.S. Treasury Secretary Bessent has privately advised Trump in recent days against attempting to remove Federal Reserve Chair Powell. Bessent's reasoning focused on several key themes: the potential impact on the economy and markets, the prospect that the Fed may already cut rates later this year, and the political and legal obstacles such a move could face.
Bessent believes firing Powell is unnecessary given strong economic performance, positive market reactions to the president's policies, and signals from Fed officials that they might deliver two rate cuts by year-end. If Powell were dismissed before his term ends, he could file a lawsuit, which might drag into next spring—coinciding with the end of his term.
Bessent also noted that Governor Cook's term expires in January next year and Powell's in May, giving Trump one or two vacancies to fill early next year. His cautious stance contrasts with other government officials who are considering more aggressive strategies. On Tuesday, Trump told reporters he found Bessent "reassuring."
