Stokes Competition Between Treasury Secretary and Commerce Secretary
U.S. President Donald Trump said he wants to fire Federal Reserve Chair Jerome Powell. “I’ll be honest, I’d love to fire his ass,” Trump said of Powell at the U.S. Saudi Arabia Investment Forum held on Nov. 19 at the Kennedy Center in Washington, D.C. He added, “He's got some real mental problems. There's something wrong with him.” The audience burst into laughter at Trump’s remarks.
Trump urged Treasury Secretary Scott Bessent to “work on” Powell to quickly lower interest rates. “The only thing Scott’s blowing it on is the Fed,” Trump said. “The rates are too high, Scott, and if you don’t get it fixed fast, I’m gonna fire your ass.” Trump went on to recite a conversation in which Bessent pleads with the president to let Powell finish out his term as chair, which is set to end in May 2026. “I can’t tell you –Scott: ‘Sir, don’t fire him. Sir, please don’t fire him. He’s got three months to go, don’t fire him,’” Trump said. “I wanna get him out!” Despite the criticism of Bessent’s handling of the Fed, Trump praised him as “a voice of reason” and told the audience, “You’re very lucky you have him, I’ll tell you that. He’s done a good job.”
The president also suggested Commerce Secretary Howard Lutnick might have a different view on Powell’s removal, saying, “I think Howard’s a little bit more for firing. I think Howard would say, ‘get him the hell out of there.’”
Since taking office, Trump has encouraged competition among Cabinet members, elevating those who produce strong results. Although delivered jokingly, his remarks criticizing Bessent for not properly managing Fed-related matters and invoking his rival, Commerce Secretary Howard Lutnick, appeared aimed at provoking competition between the two. During the early days of the Trump administration, Bessent and Lutnick competed for the position of treasury secretary.
The Fed’s minutes from the October Federal Open Market Committee (FOMC), released the same day, showed strong hawkish sentiment. The minutes stated that “many participants” expressed concern about inflation and supported maintaining current interest rates. Trump has long argued that U.S. benchmark interest rates are too high and should be lowered aggressively.