President Donald Trump criticized a Wall Street Journal article that reported his Treasury Secretary, Scott Bessent, had advised against firing Jerome Powell, the Federal Reserve Chairman.
What Happened: On Sunday, Trump took to Truth Social to counter the article. The report suggested that Bessent had to explain to Trump the potential market consequences of firing Powell. The article also highlighted Bessent’s reasons for avoiding a dispute over Powell’s final months as Fed chair.
Trump insisted that he didn’t need such advice, asserting his superior understanding of the market. “I know better than anybody what's good for the Market, and what's good for the U.S.A.”
Trump also claimed credit for the current market highs, stating, “If it weren't for me, the Market wouldn't be at Record Highs right now, it probably would have CRASHED!” He further added, “People don't explain to me, I explain to them!”
Why It Matters: The dismissal of Powell could have significant implications for the economy and markets. Deutsche Bank warned that, such a move could trigger a collapse of the currency and bond market.
Trump has been critical of Powell’s policies, particularly the Federal Reserve’s decision to not cut interest rates. The president believes that lower rates would reduce federal debt expenses.
Meanwhile, Powell has defended his decisions, including a $2.5 billion overhaul of the Federal Reserve’s headquarters. He stated that the renovation was necessary due to the buildings’ aging infrastructure.
Notably, Trump has filed a $10 billion lawsuit against WSJ, its parent company Dow Jones and the umbrella company News Corp’s. (NASDAQ:NWS) Rupert Murdoch over claims in an article that he was connected to a 2003 birthday note allegedly sent to Jeffrey Epstein.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
