Amid calls for the Fed Chair to step down, Treasury Secretary Scott Bessent believes that the decision should ultimately be up to Powell.
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“There’s nothing that tells me that he should step down right now,” said Bessent on Fox Business. “His term ends in May. If he wants to see that through, I think he should. If he wants to leave early, I think he should.”
Bessent currently has the third-highest odds of being selected by Trump to replace Powell, according to prediction platform Polymarket.
Trump Says Powell Should Lower Rates
Last week, reports circulated that President Trump would soon fire Powell. However, Trump dismissed those rumors, saying that it would be “highly unlikely” unless Powell committed fraud. At the same time, Trump did confirm that he held an informal meeting with House Republicans to discuss removing Powell before his term ends in May 2026. When polled, the group voiced their support for firing Powell.
Trump has frequently criticized Powell for delaying interest rate cuts, citing low inflation and higher rates resulting in increased U.S. government debt payments. The federal funds rate currently sits in a range between 4.25% and 4.50%.
