Bessent Told Trump Not to Fire Powell, Report Says. Why His Reasons Could Boost Markets.

Treasury Secretary Scott Bessent privately laid out his case for not firing Jerome Powell in recent days, The Wall Street Journal reported. (Andrew Harnik/Getty Images)

Treasury Secretary Scott Bessent told President Donald Trump not to fire Federal Reserve Chair Jerome Powell, The Wall Street Journal reported.

Bessent’s case, made privately to Trump in recent days, centered on the impact that ousting Powell could have on the economy and markets, the likelihood that the Fed could cut interest rates soon, and the political and legal obstacles to the move, people familiar with the matter said.

The Trump administration didn’t immediately respond to a request for comment from Barron’s. Trump said in a post on Truth Social that the Journal’s story was “untruthful.”

“Nobody had to explain that to me. I know better than anybody what’s good for the Market, and what’s good for the U.S.A,” he wrote. “If it weren’t for me, the Market wouldn’t be at Record Highs right now, it probably would have CRASHED!”

Trump has repeatedly criticized Powell for not cutting interest rates at all in 2025. He escalated his attacks on the U.S.’s top central banker on Wednesday, threatening to fire Powell and then backtracking minutes later.

Trump may get his way on interest rates later this year, anyway: Policymakers expect to lower borrowing costs twice more in 2025, according to the Fed’s economic projections in June.

Traders are all-but-certain that the Fed will keep interest rates unchanged at its July meeting but they’re pricing in cuts in September and December, according to the CME FedWatch tool.

Write to George Glover at george.glover@dowjones.com