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US Treasury Secretary Bessent: Not addressing hypotheticals about firing Powell and market impact - CNBC.
ByAinvest
Monday, Jul 21, 2025 7:41 am ET1min read
US Treasury Secretary Bessent: Not addressing hypotheticals about firing Powell and market impact - CNBC.
US Treasury Secretary Scott Bessent has declined to comment on hypotheticals regarding the potential firing of Federal Reserve Chair Jerome Powell and its market impact, according to a recent CNBC interview. Instead, Bessent shifted the focus to a broader critique of the Federal Reserve's performance and its role in monetary policy.During the interview, Bessent expressed concerns about the Federal Reserve's handling of its $2.5 billion renovation project, citing cost overruns as an example of potential mismanagement. He also questioned the Fed's success in achieving its mission of maintaining stable prices and maximum employment. Bessent suggested that the entire Federal Reserve institution should be examined to determine whether it has been successful in its role [3].
Bessent's comments come amidst increasing public criticism of Powell by President Donald Trump and other top administration officials. Trump has repeatedly called for Powell to lower interest rates and has accused the Fed of mismanagement, particularly regarding the renovation project. However, Bessent has not joined in the public criticism, instead advising Trump against firing Powell before his term ends next spring [1].
The potential firing of Powell has been a contentious issue, with some analysts predicting that such a move could lead to a legal clash and potential negative market reactions. Bessent's refusal to address these hypotheticals suggests a cautious approach to the issue, focusing instead on broader concerns about the Fed's performance and the need for transparency and accountability [2].
Powell Industries (POWL), a company with ties to the Federal Reserve, saw its stock close at $228.25 on the latest trading day, down 3.49% from the previous session. The stock has climbed by 32.18% in the past month, but investors are eagerly awaiting the company's upcoming earnings disclosure [4].
References:
[1] https://www.cnbc.com/2025/07/19/bessent-trump-powell-treasury.html
[2] https://www.financialexpress.com/world-news/us-news/us-treasury-secretary-bessent-suggests-powell-should-leave-fed-board-in-may-calls-it-tradition-formal-process/3915813/
[3] https://seekingalpha.com/news/4469219-the-entire-federal-reserve-should-be-examined-treasury-secretary-bessent-says
[4] https://www.nasdaq.com/articles/powell-industries-powl-sees-more-significant-dip-broader-market-some-facts-know
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