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Bessent warns Trump against potential Powell firing

Treasury Secretary Bessent cautioned President Trump about the risks of firing Jerome Powell.

July 19, 2025 at 09:51 PM

Bessent tried to dissuade Trump from firing Powell: WSJ

Scott Bessent cautions President Trump on firing Jerome Powell amid rising criticism.

Bessent warns Trump against firing Powell

Treasury Secretary Scott Bessent advised President Donald Trump not to dismiss Federal Reserve Chair Jerome Powell. In a Bloomberg interview, Bessent highlighted the economic, political, and legal risks of such a decision. The Wall Street Journal reported that Bessent expressed concerns that firing Powell could lead to a backlash in the financial markets and alter the central bank's legal landscape. He noted that with potential interest rate cuts on the horizon, there is no pressing need to make a change. These comments contrast with other Trump allies who have intensified their critiques of Powell in recent weeks.

Key Takeaways

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Bessent opposed firing Powell, citing economic risks.

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Firing Powell could harm financial market stability.

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Interest rate cuts may make Powell's job secure.

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Bessent's views contrast with rising criticism from others.

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Political and legal implications are at stake here.

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The Fed's independence is critical for market trust.

"Bessent warned firing Powell could spur a negative response in financial markets."

This reflects Bessent's concerns about the implications of removing Powell.

"Removing Powell could push the central bank into uncharted legal territory."

Bessent emphasizes the potential legal ramifications of such an action.

Bessent's intervention showcases a significant tension within the Trump administration regarding monetary policy. The Fed's autonomy is crucial for maintaining market stability, and Bessent's caution suggests a deeper understanding of the potential chaos triggered by political interference. As the economy faces uncertainty, the central bank's credibility and decision-making integrity should not be compromised by political pressures.

Highlights

Bessent cautioned that firing Powell could unsettle the markets.
Political pressures should not dictate the Fed's decisions.
Cutting rates may make Powell's position safer.
Trump's actions could impact economic trust.

Potential risks arise from political interference

Bessent's warning about the consequences of firing Powell highlights the sensitive nature of this political issue. A move against Powell could lead to financial market instability, raising concerns about governance and central bank independence.

Trump's decision on Powell could reshape economic landscape.

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trump powell fed economy politics politics economy

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