President Donald Trump pushed back on a report from over the weekend that revealed Treasury Secretary Scott Bessent listed the reasons against firing Federal Reserve Chairman Jerome Powell to the president in a private conversation, deeming it “untruthful.”
The Wall Street Journal reported on Saturday that Bessent made clear his concerns about firing the Fed chairman, which Trump has denied he would do despite consistently lobbing attacks at Powell, in private talks with the president last week. Those concerns voiced to Trump were the negative effects the unprecedented removal would have on the economy and markets, the possibility that the Fed moves to cut interest rates later in the year anyway, and the likely legal backlash the move would face.
Trump trashed the report in a Truth Social post on Sunday, particularly the suggestion that Bessent had to “explain” the negative market effects such a removal would cause.
“The Wall Street Journal ran a typically untruthful story today by saying that Secretary of the Treasury, Scott Bessent, explained to me that firing Jerome ‘Too Late’ Powell, the Worst Federal Reserve Chairman in History, would be bad for the Market. Nobody had to explain that to me. I know better than anybody what’s good for the Market, and what’s good for the U.S.A. If it weren’t for me, the Market wouldn’t be at Record Highs right now, it probably would have CRASHED! So, get your information CORRECT. People don’t explain to me, I explain to them!” the president posted.
The pushback from Trump comes as he previously signaled hesitancy on a move to fire Powell, despite his lingering frustration over the Fed’s repeated decisions this year to keep rates steady.
After being asked to address reports that he was seriously weighing the move, Trump said that while Powell is “doing a lousy job,” he’s not “talking about” a potential ouster of the Fed chairman.
“Fortunately, we get to make a change in the next, what, eight months, and we’ll pick somebody that’s good,” Trump added.
As Trump wavers on whether to pursue the removal, the White House is signaling it is looking to investigate alleged mismanagement by Powell on renovations to two Fed buildings in Washington, D.C., which could lead to a “cause” for removal. That mismanagement included cost overruns of roughly $700 million, according to Office of Management and Budget Director Russ Vought.
Trump has suggested to reporters that the overruns are sufficient grounds for firing Powell as recently as late last week.
BESSENT ADVISED TRUMP AGAINST FIRING POWELL: REPORT
“I think it sort of is,” the president said. “When you spend $2.5 billion on, really, a renovation, I think it’s really disgraceful.”
Powell has defended the renovation costs, while also ordering a “fresh review” of the project from the central bank’s independent inspector general.