Scott Bessent, US treasury secretary, during a Bloomberg Television interview in New York, US, on Monday, June 30, 2025. <\/p>\n
Victor J. Blue | Bloomberg | Getty Images<\/p>\n
Treasury Secretary Scott Bessent<\/a> recently urged President Donald Trump<\/a> not to fire Treasury Secretary Jerome Powell<\/a>, warning of the potential economic, political, and legal consequences of such a move, according to a new report from The Wall Street Journal<\/a>.<\/p>\n Bessent reportedly told Trump that removing Powell before his term is up next spring could spur a negative response in the financial markets and push the central bank into uncharted legal and political territory, the Journal reports, citing people familiar with the matter.<\/p>\n He also argued that the Fed appears poised to cut interest rates this year, making it unnecessary to remove Powell, the Journal said.<\/p>\n Bessent’s comments to Trump mark a departure from the president’s other top allies, some of whom have increased their public criticism of Powell in recent weeks.<\/p>\n Read more CNBC politics coverage<\/p>\n Powell has long been a target of Trump’s, and the president has harshly criticized Powell numerous times for not cutting short-term interest rates.<\/p>\n But the criticisms have escalated in recent weeks, with top Trump administration officials zeroing in on the central bank’s $2.5 billion renovation project<\/a>.<\/p>\n White House\u00a0Office of Management and Budget<\/a> Director Russell Vought<\/a>\u00a0has accused Powell of having “grossly mismanaged the Fed,” pointing to the renovation project’s cost overruns as an example.<\/p>\n Vought also asked Powell a series of questions about the renovation project, which Powell responded to this week.<\/a><\/p>\n “The Board believes it is of the utmost importance to provide transparency for our decisions and to be accountable to the public,” Powell wrote.<\/p>\n Removing Powell before his term is up, which would be an unprecedented move, would likely trigger a legal clash<\/a> that could wind up at the U.S. Supreme Court.<\/p>\n