White House Pushes Back on Fed Speculation
Treasury Secretary Scott Bessent said Wednesday that President Trump has no plans to fire Federal Reserve Chair Jerome Powell—despite growing frustration over the Fed’s refusal to lower interest rates. But according to Bessent, pressure on Powell to act is “part of the job.”
During an interview on MSNBC’s Morning Joe, Bessent responded to concerns that Trump might try to remove Powell before his term ends in May. “President Trump has made it clear—he’s not firing Powell,” Bessent said. “Would he prefer he step aside? Possibly. But there’s no plan to force him out.”
Interest Rates Remain a Top Concern for Trump Administration
The back-and-forth comes amid rising tension over the direction of U.S. monetary policy. President Trump blasted Powell earlier this week, saying the Fed chair is failing to support American growth.
“I think he’s doing a bad job, but he’ll be out in eight months anyway,” Trump said Tuesday. While stopping short of calling for his resignation, the message was clear—Trump wants lower interest rates now, not later.
Market Volatility Sparks Concern Among Retirees and Investors
Last week, Trump reportedly told Republican lawmakers in a private Oval Office meeting that he was considering firing Powell. The news sent shockwaves through financial markets, with the S&P 500 slipping into the red. Though Trump later said such a move is “highly unlikely,” he also added, “I don’t rule out anything.”
For older Americans relying on retirement income, the Fed’s rate decisions are no small matter. Higher interest rates can squeeze savings, depress investment returns, and limit economic expansion. Trump’s allies argue the Fed’s tight policies are stalling the recovery and hurting everyday Americans.
Public Pressure Mounts on Powell to Lower Rates
When pressed about the administration’s criticism of the central bank, Bessent didn’t hold back. “Anyone in public service should expect pressure—from the president, from Congress, and from the American people,” he said.
The Trump administration has made clear it wants a Fed that supports growth, jobs, and strong retirement savings—not one that fuels market uncertainty with stubborn inaction.
Trump Signals Accountability for Federal Reserve Leadership
As the 2024 election cycle heats up, Trump’s message is resonating with older voters worried about inflation, stock market swings, and the future of Social Security and Medicare. By taking on Powell, Trump is sending a message: unelected technocrats don’t get a free pass when Americans are struggling.
Whether Powell steps down or finishes his term, one thing is certain—President Trump is ready to hold the Fed accountable for its decisions, and the fight over interest rates is just getting started.