Trump Threatens Treasury Secretary Over Federal Reserve Chair's Job Security

President Donald Trump has intensified his criticism of Federal Reserve Chair Jerome Powell, suggesting he would fire Treasury Secretary Scott Bessent if the Fed does not lower interest rates more aggressively. During a speech at the U.S.-Saudi Investment Forum in Washington, D.C., on November 19, 2025, Trump expressed his frustration with Powell's leadership, stating, “The only thing Scott is blowing it on is the Fed because the Fed, the rates are too high, Scott. If you don’t get it fixed fast, I’m going to fire your ass.” This remark underscores the tension between Trump and the Federal Reserve, particularly regarding interest rate policies.

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Trump has been a vocal critic of Powell since his nomination in 2017, frequently labeling him as “grossly incompetent” and expressing a desire to replace him. The president's dissatisfaction stems from Powell's reluctance to cut interest rates swiftly, which Trump believes is necessary to stimulate economic growth. Despite his threats, Trump has been advised against firing Powell due to potential chaos in financial markets, leading to a complex dynamic within his administration.

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• Donald Trump: President of the United States, known for his contentious relationship with the Federal Reserve and its chair.

Quartz

• Scott Bessent: Treasury Secretary, described by Trump as a “voice of reason” who has urged the president to retain Powell until the end of his term in May 2026.

Huntsville Times

• Jerome Powell: Chair of the Federal Reserve, facing pressure from Trump regarding interest rate decisions.

CNBC

In response to Trump's remarks, White House spokesman Kush Desai stated, “The White House maintains complete confidence in Secretary Bessent's job running the Treasury Department and President Trump's search for a new – and competent – chairman of the Federal Reserve.” This indicates a formal backing of Bessent amidst the president's threats.

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Critics of Trump's approach argue that his threats to fire Powell could destabilize financial markets. Experts emphasize that the Federal Reserve operates independently and that attempts to dismiss Powell without just cause could undermine the institution's credibility. The potential for market panic is a significant concern among financial analysts.

CNN

While Trump has repeatedly threatened to fire Powell, he has also acknowledged Bessent's role in advising against such a move. This duality raises questions about the administration's internal dynamics and the actual likelihood of Powell's dismissal. Furthermore, the Fed's decision-making process remains contentious, with officials divided over the necessity of further rate cuts amid ongoing inflation concerns.

CNN

• “The only thing Scott is blowing it on is the Fed because the Fed, the rates are too high, Scott. If you don’t get it fixed fast, I’m going to fire your ass,” — President Donald Trump

CNN

• “I'd love to fire his ass,” — President Donald Trump on Jerome Powell

Forbes

• “You're very lucky you have him. I'll tell you that,” — President Donald Trump on Scott Bessent

Quartz

As Powell's term approaches its end in May 2026, Trump is reportedly considering multiple candidates for his replacement, including Fed Vice Chair for Supervision Michelle Bowman and former Fed board member Kevin Warsh. The ongoing discussions within the administration will likely shape the future direction of the Federal Reserve and its policies.

The Hill