Trump Threatens to Fire His 'Voice of Reason'

President Trump has publicly warned Treasury Secretary Scott Bessent that his job is on the line if the Federal Reserve doesn't bring down interest rates soon. Speaking at a US-Saudi investment forum in Washington, Trump told Bessent, "If you don't get it fixed fast, I'm going to fire your ass." CNN reports he was "smirking" during this comment, and CNBC notes it's unclear how serious he was. White House spokesman Kush Desai released a statement saying "the White House maintains complete confidence in Secretary Bessent's job running the Treasury Department and President Trump's search for a new—and competent—chairman of the Federal Reserve."

James Ragan of DA Davidson didn't like the challenge to Bessent. "Markets have really appreciated having Bessent around," he says, adding, "he's been very much the voice of reason in the Trump administration." Trump himself acknowledged Bessent is a "voice of reason" who has privately advised against firing Fed chair Jerome Powell. Commerce Secretary Howard Lutnick, on the other hand, is "a little bit more for firing" Powell, Trump said. He's repeatedly criticized the Fed and Powell for not cutting rates quickly enough, though the central bank did lower them in September for the first time in nine months, and again last month, bringing rates to their lowest level in three years.