Trump Denies Report That Bessent Made Case For Not Firing Fed Chair

President Donald Trump pushed backmost connected a communicative nan Wall Street Journal published that said Treasury Secretary Scott Bessent made a lawsuit for not firing Federal Reserve chair Jerome Powell. On Truth Social Sunday, July 20, Trump said nan WSJ ran a “typically untruthful story” and that “nobody had to explain” to him why firing Powell would beryllium bad for nan market.

“I cognize amended than anybody what’s bully for nan Market, and what’s bully for nan U.S.A,” Trump wrote. “So, get your accusation CORRECT. People don’t explicate to me, I explicate to them!”

Trump has criticized Powell for not lowering liking rates, moreover calling him a “numbskull” astatine 1 constituent connected societal media. Recently, nan president said nan Federal Reserve should lower nan rate from 4.5% to 1.5%. 

According to an article successful nan New York Times, Trump drafted a letter firing Powell, but erstwhile asked astir nan Federal Reserve Chair’s imaginable ousting, nan president told reporters: “I don’t norm retired anything, but I deliberation it’s highly unlikely.”

The Federal Reserve is an independent authorities agency. Its president is picked for four-year word by nan president and confirmed by nan Senate. Legal experts who said to nan New York Times said firing a Federal Reserve chair is tricky and hasn’t been done successful modern United States history. Per nan Federal Reserve Act of 1913, nan chair tin only beryllium terminated for “cause.” Lev Menard, a ineligible clever clever astatine Columbia University, said this intends “there has to beryllium a showing of misconduct.” If Trump were to occurrence Powell, he could spell to a national territory tribunal and sue, and nan lawsuit could extremity up successful nan Supreme Court, nan Times wrote.

Bessent, according to group acquainted pinch nan matter who talked to nan WSJ, successful caller days mentioned nan governmental and ineligible obstacles firing Powell would person erstwhile talking to Trump. Other reasons Bessent floated for not ousting Powell included nan effect connected system and markets and nan thought that nan Fed is going to trim rates later successful 2025. Firing Powell would beryllium unnecessary, Bessent reportedly said, because nan markets person responded good to Trump’s policies.

Powell was first nominated by Trump during his first term, and past reappointed by Biden. His astir caller word arsenic chair started successful 2022, and will extremity successful May 2025, though his position connected nan Federal Reserve’s Board of Governors is successful spot until 2028.

Trump suing WSJ and its publisher

Trump lashed retired earlier astatine nan Wall Street Journal for a different article that elaborate a missive nan president allegedly sent convicted activity offender Epstein for a 2003 day medium which had a drafting of a naked female successful it. He revenge a lawsuit against nan outlet, its publisher, Dow Jones; its genitor company, News Corp; Rupert Murdoch, News Corp’s founder; News Corp CEO Robert Thomson and 2 reporters connected Friday, July 19.

The suit asked for damages awarded to beryllium astatine slightest $10 billion. A Dow Jones spokesperson antecedently said successful a connection to Straight Arrow News that it has “full assurance successful nan rigor and accuracy of our reporting, and will vigorously defend against immoderate lawsuit.”