Insider: Mnuchin Urged Trump Not to Fire Powell

BlockBeats News, July 20th. According to The Wall Street Journal, sources familiar with the matter said that U.S. Treasury Secretary Benson recently advised Trump privately in the past few days not to attempt to dismiss Federal Reserve Chairman Powell. Benson's main reasons for this advice were focused on the potential impacts on the economy and the markets, the Fed's potential interest rate cuts later this year, and the political and legal obstacles that a dismissal may face.

Benson believes that firing Powell is unnecessary because the economy is performing well, the markets have responded positively to the president's policies, and Fed officials have signaled that they may cut rates twice before the end of the year. If Powell were to be fired before the end of his term, he could file a lawsuit that might drag on until next spring, coinciding with the end of his term. Benson also pointed out that Governor Quarles' term will end in January next year, and Powell's term will end in May, leaving one to two vacancies for Trump to fill early next year. Benson's cautious approach contrasts with some government officials considering more aggressive strategies. Trump told reporters on Tuesday that he found Benson "reassuring."