(Washington, D.C.) U.S. President Donald Trump said he would fire Treasury Secretary Bessett if she fails to help lower interest rates.
Although Trump made this statement jokingly, it reflects his growing dissatisfaction with the Federal Reserve's reluctance to accelerate interest rate cuts in the face of voter pressure to lower the cost of living.
At the U.S.-Saudi Investment Forum in Washington on Wednesday (November 19), Trump said, "The only thing Scott (Bessett) messed up is the Fed... Interest rates are too high, Scott. If you don't fix it soon, I'm firing you, how about that?"
Trump described Federal Reserve Chairman Jerome Powell as "grossly incompetent" and reiterated his desire to fire Powell, but Bessett dissuaded him because Powell's term has only three months remaining. Observers had previously warned that a forced dismissal of Powell would trigger market turmoil and undermine confidence in the central bank's independence.
Fed Meeting Minutes: Several Officials Inclined Against December Rate Cut
Despite Trump's desire for the Fed to continue cutting rates, the minutes of the Fed meeting released Wednesday showed that several Fed officials leaned towards opposing another rate cut in December. Further Reading
Following its monetary policy meeting on October 29, the Federal Reserve announced a 25-basis-point cut to the target range for the federal funds rate, bringing it to between 3.75% and 4.00%, marking the fifth rate cut since September 2024.
However, the meeting minutes revealed that while most participants believed further rate cuts might be appropriate over time, several indicated that a 25-basis-point cut in December might not be the best option.
The minutes stated, "Many participants believed that, based on their outlook for the economy, maintaining the target interest rate range unchanged for the remainder of the year would likely be appropriate."
Many officials agreed that the Fed should proceed cautiously in its decision-making, partly because the suspension of economic reports, such as inflation data, during the US government shutdown limited the availability of key economic data.
However, several participants also indicated that if the economy develops broadly as they expect before the next meeting, another rate cut in December might still be appropriate.
"These minutes highlight that the Fed is more divided than usual about its next move," said Allen of Pansen Macroeconomics. However, he expects the Fed to continue easing policy in the future.
