Trump threatens to fire Bessent over high interest rates

Investing.com -- President Donald Trump suggested he would fire Treasury Secretary Scott Bessent if he doesn’t help secure lower interest rates, expressing frustration with the Federal Reserve’s slow pace of rate cuts.

Trump made the remarks on Wednesday at a US-Saudi investment event in Washington, using a joking tone while addressing growing voter pressure over the cost of living.

"The only thing Scott’s blowing it on is the Fed," Trump said. "Rates are too high, Scott, and if you don’t get it fixed fast, I’m going to fire your ass. Okay?"

The president also repeated his desire to fire Federal Reserve Chair Jerome Powell, calling him "grossly incompetent" and suggesting Powell deserves to be sued over his handling of a costly renovation of the central bank’s campus.

Trump confirmed that Bessent had prevented him from attempting to remove Powell, quoting the Treasury Secretary as saying, "Sir, please don’t fire him, he’s got three months to go."

Despite the criticism of Bessent’s handling of the Fed, Trump praised him as "a voice of reason" and told the audience, "You’re very lucky you have him, I’ll tell you that. He’s done a good job."

The president also suggested Commerce Secretary Howard Lutnick might have a different view on Powell’s removal, saying, "I think Howard’s a little bit more for firing. I think Howard would say, get him the hell out of there."

Financial experts have cautioned that forcing Powell out would raise concerns about central bank independence and potentially disrupt financial markets.

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