Scott Bessent, U.S. Treasury Secretary, advised President Trump against firing Jerome Powell, the Federal Reserve Chairman, to avoid legal complications and maintain market stability.
Bessent's Advice and Its Economic Impact
Scott Bessent believes that firing Powell would be imprudent since the economy is performing well and the market is responding positively to the current policies. Bessent highlighted that the Fed is already considering rate cuts this year.
Potential Market Consequences
Market responses remain steady amid discussions of potential leadership changes at the Fed. Bessent emphasized the need to maintain the current setup for sustaining stability in financial markets. His more conservative stance contrasts with other officials advocating for more aggressive strategies.
Historical Context and Market Data
Discussions about firing a Fed Chair are not new and have occurred before, notably during the 2019 trade war, leading to some volatility. Currently, Bitcoin is valued at $117,938.02 with a market cap of 2.35 trillion dollars, and its dominance stands at 60.70%.
Scott Bessent's advice underscores the importance of market stability, which may be best achieved by retaining the current Fed leadership.
