Informed sources: Bescent urges Trump not to remove Powell

On July 20th, according to the Wall Street Journal, people familiar with the matter said that U.S. Treasury Secretary Vincent Bescent has privately suggested to Trump in recent days that there should be no attempt to remove Federal Reserve Chairperson Jerome Powell. Bescent's reasons mainly focus on several themes: the possible impact on the economy and markets, the prospect that the Federal Reserve could already cut interest rates later this year, and the possible political and legal obstacles to such a move. Bescent believes that firing Powell is not necessary because the economy is doing well, the market has responded positively to the president's policies, and Federal Reserve officials have signaled that they may make two rate cuts before the end of the year. If Powell is fired before the end of his term, Powell could file a lawsuit, which could drag on until next spring, when Powell's term also ends. Bethan also pointed out that Governor Coogler's term ends in January and Powell's term ends in May, which would leave Trump with one or two vacancies to fill early next year. Bethan's cautious approach contrasts with some other administration officials considering a more aggressive strategy. Trump told reporters on Tuesday that he found Bethan "reassuring."