The U.S. Treasury Secretary advises Trump not to fire Powell, stating that there may be a rate cut by the end of the year.

[Coin World] According to reports, informed sources say that U.S. Treasury Secretary Basant recently privately advised Trump that he should not attempt to remove Fed Chairman Powell. Basant's reasoning mainly focuses on several themes: the potential impact on the economy and markets, the prospect of the Fed possibly lowering interest rates later this year, and the political and legal obstacles that such a move might face.

Besant believes that firing Powell is unnecessary because the economy is performing well, the market is responding positively to the president's policies, and Fed officials have already signaled that they may cut rates twice before the end of the year. If he is fired before Powell's term ends, Powell may file a lawsuit, which could drag into next spring, by which time Powell's term will have also ended.

Bessent also pointed out that the term of council member Kugler will end in January next year, and Powell's term will end in May, which will leave Trump with one or two vacancies to fill in early next year. Bessent's cautious attitude contrasts with that of some other government officials who are considering more aggressive strategies. Trump stated to reporters on Tuesday that he finds Bessent "reassuring."