CoinVoice has recently learned, according to Jin Shi Data citing the Wall Street Journal, that informed sources say U.S. Treasury Secretary Besenet has privately advised Trump in recent days that he should not attempt to remove Federal Reserve Chairman Powell. Besenet's reasoning primarily focuses on several themes: the potential impact on the economy and markets, the prospect of the Federal Reserve potentially cutting rates later this year, and the political and legal obstacles that such a move might face.
Besenet believes that firing Powell is unnecessary 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 rates twice before the end of the year. If he is fired before Powell's term ends, Powell could file a lawsuit, and the litigation could drag into next spring when Powell's term is also set to end.
Besenet 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 to two vacancies to fill early next year. Besenet's cautious attitude contrasts with some other government officials who are considering more aggressive strategies. Trump said to reporters on Tuesday that he finds Besenet 'reassuring'. [Original link]
