In light of recent discussions about the possible firing of Federal Reserve Chair Jerome Powell, Scott Bessent played a crucial role in maintaining Powell's position.
Scott Bessent's Influence on Powell's Situation
Scott Bessent, the Treasury Secretary, intervened to prevent the potential firing of Jerome Powell. He made it clear to Trump that firing Powell could lead to serious negative consequences for the financial markets.
Legal and Political Risks of Firing Powell
Bessent warned Trump about potential legal consequences, including the risk of a lawsuit from Powell. He also pointed out strong opposition among Senate Republicans who may block any attempt to fire Powell.
Other Trump Officials Against Powell Due to Budget
Despite Bessent's support, other members of Trump's administration, including Budget Director Russell Vought, are still searching for ways to remove Powell. They cite rising costs of an office renovation as a potential reason for dismissal.
As a result of Scott Bessent's actions, Jerome Powell remains in his position, but tensions regarding his future persist, especially with the efforts of other administration members.
