BlockBeats news, on July 20, according to the Wall Street Journal, informed sources said that U.S. Treasury Secretary Basent recently privately advised Trump in recent days not to attempt to dismiss Federal Reserve Chairman Powell. Basent's reasoning focused mainly on the following points: potential impacts on the economy and markets, the possibility that the Federal Reserve might lower interest rates later this year, and the political and legal obstacles that dismissal could face.
Basent believes it is unnecessary to fire Powell because the economy is performing well, the market is responding positively to the president's policies, and Federal Reserve officials have already signaled that they may cut interest rates twice before the end of the year. If Powell were to be dismissed before the end of his term, he might file a lawsuit, and the lawsuit could drag on until next spring, at which point Powell's term would also be ending. Basent also pointed out that the term of Governor Kugler will end in January next year, and Powell's term will end in May, which will leave Trump with one or two vacancies to fill at the beginning of next year. Basent's cautious attitude contrasts with other government officials who are considering taking a more aggressive strategy. Trump stated to reporters on Tuesday that he felt Basent was 'reassuring.'