Top Trump Official Downplays Threat From the President: “He’s Just Joking!”
Treasury Secretary Scott Bessent is trying to quell the buzz about President Donald Trump’s recent public strike at him. At a recent Washington event, the president joked that he would “fire” Bessent if interest rates don’t drop soon, drawing national attention. Bessent said it was just out-of-context humor.
Trump attended the Saudi Investment Forum at the Kennedy Center. President Trump criticized the Federal Reserve and excessive interest rates in his speech. He also addressed Bessent, who was in the crowd, with the comment that made national headlines. The crowd chuckled, but the comment got political.
Trump’s tone wasn’t meant to be taken seriously, Bessent said this week. He told a morning news program that the room’s atmosphere revealed the president’s intentions. He said what was nasty in print was funny in person. He said the president often jokes about economic issues, notably the Fed.
But Bessent also raised the complexity of modern monetary policy. He highlighted that the debate has expanded beyond interest rate hikes and cuts. Federal Reserve balance sheet, reserve system structure, and reserve sufficiency all affect financial conditions. Bessent says the Fed should take a calmer, less visible approach after becoming more assertive in recent years.
He stated that regional bank presidents’ frequent statements confuse the people. Instead, he wants the Fed to prioritize long-term stability for American families and companies. He believes monetary policy should be a gradual, deliberative process that helps the country navigate economic changes, not a competition.
Meanwhile, President Trump has often blasted Federal Reserve Chair Jerome Powell for excessive interest rates. Trump has considered firing Powell, but his term is nearly over. The president insists the Fed cut rates faster to boost economic growth.
September and October saw the central bank decrease interest rates to 3.75% to 4%. However, the future is unknown. Federal Reserve policymakers’ internal splits raise uncertainties about a December rate cut. Recent meeting summaries reveal that officials disagree on future modifications.
Financial markets await the Fed’s next big policy report in early December. Despite the president’s lighthearted threats, Bessent’s statements show that at least one major official wants to moderate the temperature and focus on stability, clarity, and long-term strategy during White House and Federal Reserve talks.
Sources
Information compiled from national broadcast interviews, public speeches, and recent Federal Reserve policy discussions.
