Trump Quips He’ll Fire Bessent If Interest Rates Are Not Lowered
President Donald Trump suggested he would fire Scott Bessent if the Treasury secretary doesn’t help secure lower interest rates, a move that is up to the Federal Reserve and not administration officials.
“The only thing Scott’s blowing it on is the Fed,” Trump said Wednesday at a US-Saudi investment event in Washington. “Rates are too high, Scott, and if you don’t get it fixed fast, I’m going to fire your ass. Okay?”
Trump’s remarks — made in a joking tone — underlined the president’s dissatisfaction with the Fed as the White House faces increasing pressure from voters to lower the cost of living.
The president also reiterated that he would love to fire Fed Chair Jerome Powell, calling him “grossly incompetent” and that the official deserves to be sued for his handling of a costly renovation of the central bank’s campus.
Bessent has no direct control over interest rates as Treasury secretary. Borrowing costs are within the purview of the central bank’s Federal Open Market Committee. That group has voted twice this year to lower interest rates by 25 basis points, but Trump has pushed for a much more aggressive pace.
The Fed declined to comment on Trump’s remarks.
Bessent is leading the effort to select the next chair to lead the Fed when Powell’s term is up in May 2026. Trump has repeatedly said he would like to appoint Bessent as the central bank’s top official, but that the secretary prefers to stay in his perch at Treasury.
Trump on Wednesday said Bessent had held him back from firing Powell outright, as he has mused about doing in the past. Dismissing Powell threatens to deliver a shock to markets and undermine investor confidence in the autonomy of the central bank.
Bessent has curated a list of contenders to lead the Fed that includes current central bank officials Christopher Waller and Michelle Bowman, former Fed Governor Kevin Warsh, National Economic Council Director Kevin Hassett and BlackRock Inc. executive Rick Rieder.
Trump on Tuesday said that he thinks he’s already identified his choice, but didn’t offer any indication of who that candidate might be. The president said he was looking at both “surprising” and “standard” candidates, adding that he was likely to pick a conventional choice.
Bessent later Tuesday said that interviews were ongoing and that in mid-December Trump would meet with three finalists to make a decision.
The next chair is likely to be named to a 14-year Fed governor term that opens on Feb. 1. The term that expires at that time is currently held by Stephen Miran, who is on unpaid leave from the White House Council of Economic Advisers.
Source :Bloomberg.com
