July 20, 2025
Treasury Secretary Bessent blocks Fed Chair removal attempt
Public feud over Fed independence creates market chaos and mortgage rate spikes
💰Economy🔍Policy Analysis
President Trump attacked the Wall Street Journal July 20, 2025, for reporting that Treasury Secretary Scott Bessent convinced him not to fire Federal Reserve Chairman Jerome Powell. The public dispute between Trump, Bessent, and media outlets creates market chaos as investors cannot determine whether the Fed remains independent from political pressure.
Wall Street Journal reported Treasury Secretary 
Scott Bessent convinced Trump not to fire Fed Chair Jerome Powell, which Trump denied on Truth Social
Trump attacked WSJ July 20, 2025 for reporting Bessent saved Powell's job, creating public dispute between president and treasury secretary
Market turmoil resulted from uncertainty over Fed independence as mortgage rates spiked 0.5% and dollar dropped 8% within hours
Bessent later removed himself from consideration for Fed chair, telling Trump August 5, 2025 he wants to remain at Treasury Department
Trump has repeatedly called Powell 'too late' on interest rate cuts and threatened to allow 'major lawsuit' against Fed chairman
Federal Reserve independence considered crucial for maintaining investor confidence and preventing politically motivated monetary policy
Public disagreement between Trump and Bessent over Fed policy signals internal administration divisions on financial markets approach
💰Economy🔍Policy Analysis
People, bills, and sources
Scott Bessent
Treasury Secretary
Donald Trump
President of the United States
Jerome Powell
Federal Reserve Chairman
What You Can Do
1
Diversify retirement savings internationally through foreign currency accounts at major banks to protect from domestic political interference
2
Lock in mortgage rates immediately at current levels before further Fed independence concerns drive borrowing costs higher
3
Contact Senate Banking Committee at 202-224-7391 demanding hearings on maintaining Federal Reserve independence from political pressure
4
Support legislation requiring congressional approval for Fed chair removal at govtrack.us to protect monetary policy from presidential whims
5
Monitor Federal Reserve meeting minutes at federalreserve.gov for signs of political pressure affecting interest rate decisions
6
Join advocacy through Americans for Financial Reform at ourfinancialsecurity.org defending independent central banking from political control