Trump "I want to fire Powell"…Urges U.S. Treasury Secretary to Persuade Rate Cut [Fed Watch]

Korea Economic Daily

Summary

President Trump reportedly raised the possibility of firing Powell, strengthening pressure for a rate cut.
It was reported that the October FOMC minutes mentioned that whether additional rate cuts would occur is unclear.
President Trump said he is considering several candidates for a replacement of the Fed chair.

"Honestly, I want to fire Powell"

"If you can't persuade [him] to cut rates, I'll fire the Treasury Secretary too"

U.S. President Donald Trump publicly said on the 19th (local time) that he wants to fire Jerome Powell, chair of the U.S. central bank (Fed). He pressured Scott Bessent, the U.S. Treasury Secretary who was in the same room, to "persuade" Powell to quickly lower interest rates. Trump also jokingly warned that if he doesn't do so, "I'll fire you too."

In a speech at the U.S.-Saudi investment forum in Washington D.C. that day, President Trump said of Chairman Powell, "To be honest, I want to fire him as if kicking his butt out."

He then told Treasury Secretary Bessent, "Rates are too high. Scott, if you don't fix this quickly, I'll fire you too." It is unclear whether there is an actual intention to carry out a firing.

White House spokesperson Kushi Desai said in a statement to CNBC, "The White House has full confidence in Secretary Bessent's ability to perform his duties, and President Trump is looking for a new 'capable' Fed chair candidate."

Trump mimicked a conversation in which Secretary Bessent asks to delay dismissing Chairman Powell until the end of his term (ending May 2026), saying, "Scott would say, 'Sir, please don't fire him. Please. He only has three months left in his term.' But I want to get him out right away."

He also said of Commerce Secretary Howard Lutnick that he is "someone who prefers the dismissal of Chairman Powell," and "Howard would say, 'Throw him out right now.'"

Trump's remarks came just before the release of the October FOMC minutes. According to the minutes, Fed officials were sharply divided over the need for further rate cuts, and ultimately lowered the benchmark rate by 0.25% percentage point to 3.75~4.0%, but whether there will be an additional cut in December is unclear.

President Trump has long criticized Chairman Powell, saying that "he is not cutting rates quickly enough or by enough." He also claimed at the White House the day before, "I am trying to fire Powell, but people are stopping me."

President Trump also said that he is discussing several candidates to succeed Chairman Powell, and that Secretary Bessent is involved in that process.

New York = Park Shin-young, correspondent nyusos@hankyung.com