Bessent tried to dissuade Trump from firing Powell: WSJ

Treasury Secretary Scott Bessent recently called on President Donald Trump, the Treasury Secretary Jerome Powell, to warn the potential economic, political and legal consequences of such a movement. Wall Street Journal.

Bessent reported that Trump could give a negative response in the financial markets before staying in the spring next spring, and that the Central Bank referred to people who are familiar with the issue.

He also argued that the FED seems ready to reduce interest rates this year and made it unnecessary to remove Powell.

Bessent’s comments to Trump are separated from the other senior allies of the president who increased public criticisms against Powell in recent weeks.

Powell has long been the target of Trump for a long time, and he has repeatedly criticized President Powell for not reducing short -term interest rates.

However, the criticism has increased in recent weeks and the best Trump management officials have been reset to the Central Bank’s $ 2.5 billion renovation project.

White House Management and Budget Office Director Russell Vought accused Powell of “the FED to a great extent wrong managing the Fed” by pointing to the cost -effectiveness of the renewal project.

Vought also asked Powell a series of questions about the renovation project that Powell responded this week.

“The Board believes that it is very important to provide transparency for our decisions and to be responsible to the people.”

Powell will be an unprecedented move, and the abolition of the abolition before the end of his term of office will probably trigger a legal conflict that may enter the US Supreme Court.

The White House or Treasury Department did not respond immediately to CNBC’s request for comments. Wall Street Journal report.