Bessent stated, "There is no indication that Powell needs to resign," directly denying speculation that Powell was forced out.
This statement aligns with his position in April 2025—when he refused to comment on Powell's future, emphasizing the independence of the Federal Reserve.
Background: Previously, Trump had publicly criticized Powell as "completely rigid" and pressured for interest rate cuts, even threatening dismissal (later clarifying that he would not take action before the end of the term).
Bessent's latest remarks aim to quell the public pressure for political interference in the central bank.
2. Powell's Autonomous Choice
Bessent added, "If Powell wants to resign early, he can choose to do so."
This statement implies two layers of meaning:
Respect for Powell's personal wishes: emphasizing that the decision to stay or leave is in Powell's hands;
Hinting at potential possibilities: combined with Bessent mentioning in April that "interviews for the next Federal Reserve Chair candidates will begin in the fall,"
Powell's voluntary resignation could expedite the leadership transition process.
