Trump quips he'll fire Bessent if interest rates not lowered

President Donald Trump suggested he would fire Scott Bessent if the Treasury secretary doesn't help secure lower interest rates, expressing ongoing frustration with the Federal Reserve's reluctance to cut rates more quickly.

Trump's remarks — made in a joking tone — come amid increased pressure on the administration from voters to lower the cost of living. The US central bank is responsible for setting short-term rates that influence borrowing costs across the economy.

"The only thing Scott's blowing it on is the Fed," Trump said Wednesday at a US-Saudi investment event in Washington. "Rates are too high, Scott, and if you don't get it fixed fast, I'm going to fire your ass. Okay?"

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The president also reiterated that he would love to fire Fed Chair Jerome Powell, calling him "grossly incompetent" and that the official deserves to be sued over his handling of a costly renovation of the central bank's campus. Trump also confirmed that Bessent had stopped him from trying to force the Fed chief out.

Trump indicated that Bessent had told him, "Sir, please don't fire him, he's got three months to go." The president also told the audience that Bessent is "a voice of reason. You're very lucky you have him, I'll tell you that. He's done a good job." Fed watchers have warned that a forced ouster of Powell would have stoked concerns about central bank independence and roiled financial markets.

"I think Howard's a little bit more for firing," Trump added, in reference to Commerce Secretary Howard Lutnick. "I think Howard would say, get him the hell out of there."

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Bessent has no direct control over interest rates as Treasury secretary, with the central bank's Federal Open Market Committee being the panel that determines the benchmark policy setting. The FOMC has voted twice this year to lower rates by 25 basis points, but Trump has pushed for a much more aggressive pace.

The Fed declined to comment on Trump's remarks.

Bessent's Metric

Bessent has identified 10-year Treasury yields as his main metric for borrowing costs, and has touted repeatedly that they have come down this year — in contrast with what's happened in other advanced economies. Ten-year yields are a reference point for mortgage rates, which have also retreated this year.

The Treasury secretary is leading the effort to select the next chair to lead the Fed when Powell's term is up in May 2026. Trump has repeatedly said that he would like to appoint Bessent as the central bank's top official, but that the secretary prefers to stay in his perch at Treasury.

Bessent has curated a list of contenders to lead the Fed that includes current central bank officials Christopher Waller and Michelle Bowman, former Fed Governor Kevin Warsh, National Economic Council Director Kevin Hassett and BlackRock Inc. executive Rick Rieder.

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Trump on Tuesday said that he thinks he's already identified his choice, but didn't offer any indication of who that candidate might be. The president said he was looking at both "surprising" and "standard" candidates, adding that he was likely to pick a conventional choice.

Bessent later Tuesday said that interviews were ongoing and that in mid-December Trump would meet with three finalists to make a decision.

The next chair is likely to be named to a 14-year Fed governor term that opens on Feb. 1. The term that expires at that time is currently held by Stephen Miran, who is on unpaid leave from the White House Council of Economic Advisers.