According to BlockBeats, U.S. Treasury Secretary Besent has privately advised U.S. President Donald Trump against attempting to remove Federal Reserve Chair Jerome Powell. Besent's reasoning focuses on potential impacts on the economy and markets, the likelihood of interest rate cuts later this year, and possible political and legal challenges.
Besent argues that dismissing Powell is unnecessary due to the strong economic performance, positive market reactions to the President's policies, and signals from Federal Reserve officials indicating possible rate cuts by the end of the year. If Powell were removed before his term ends, he might file a lawsuit, which could extend into next spring when his term concludes. Besent also noted that Governor Kugler's term ends in January next year, and Powell's term ends in May, providing Trump with one or two vacancies to fill early next year.
Besent's cautious approach contrasts with some government officials considering more aggressive strategies. Trump expressed confidence in Besent, describing him as reassuring during a conversation with reporters on Tuesday.