President Donald Trump publicly warned Treasury Secretary Scott Bessent on Wednesday that he could lose his job if he fails to persuade the Federal Reserve to lower interest rates, delivering the threat with a smile during a high-profile investment summit with Saudi Arabia.
“The only thing Scott’s blowing it on is the Fed, because the Fed, the rates are too high, Scott, and if you don’t get it fixed fast, I’m going to fire your ass,” Trump said at the U.S.-Saudi Investment Forum at the Kennedy Center in Washington. The remarks came as Trump stood before an audience of business leaders and Saudi Crown Prince Mohammed bin Salman, with Bessent visibly smiling at the president’s comments.
The threat appeared partly in jest, but it underscored mounting frustration within the White House over interest rates that remain elevated despite recent Federal Reserve rate cuts. The Fed lowered its benchmark rate by a quarter percentage point in October to a target range of 3.75% to 4%, the second consecutive cut after initiating easing in September. However, Trump has repeatedly pressed for more aggressive reductions to lower borrowing costs for mortgages, car loans, and business financing.
Trump also escalated his attacks on Federal Reserve Chair Jerome Powell, saying he would “love to fire his ass” and claiming Powell has “some real mental problems.” The president called Powell “grossly incompetent” and criticized him for budget overruns on renovations to Federal Reserve headquarters, which Trump said would cost $4 billion—though estimates peg the project at $2.5 billion.
During his remarks, Trump disclosed for the first time that Bessent has been advocating for Powell to remain in his position until his term as chair expires in May 2026. Trump mimicked Bessent’s reported pleas: “Scott, sir, don’t fire him. Sir, please, don’t fire him. He’s got three months to go.” Powell’s term as a governor extends to January 2028, though it has been customary for Fed chairs to step down from the board when their leadership term ends.
Trump vs. Powell
The Treasury secretary’s actual authority to influence Federal Reserve policy is limited. The central bank has maintained independence from direct political control since the Treasury-Fed Accord of 1951, which separated government debt management from monetary policy and established that the Fed would set interest rates without interference from the executive branch. Bessent himself has acknowledged this separation, saying in September “the Fed should be independent” while also arguing the institution has “made a lot of mistakes.”
Trump has consistently criticized Powell throughout his second term, previously calling him “late,” “a real dummy,” and “a total moron.” The president said Tuesday he wants to replace Powell “right now,” but “people are holding me back.” Legal experts have noted that while the president can remove a Federal Reserve governor “for cause,” firing Powell simply for policy disagreements would face significant legal challenges.
The Federal Reserve’s rate-setting committee has shown internal divisions over the pace of future cuts. Minutes from the October meeting revealed that some officials opposed the quarter-point reduction, with one preferring a half-point cut and another favoring no change at all. Fed officials remain split on whether to continue lowering rates in December as they balance concerns about inflation, which remains above the 2% target, against signs of weakening in the labor market.
Bessent, who was sworn in as the 79th Treasury secretary in January, previously worked as chief investment officer for Soros Fund Management and founded his own hedge fund, Key Square Capital Management. He has earned respect on Wall Street and has been mentioned as a potential candidate to succeed Powell next year.
Wednesday’s exchange occurred during a forum celebrating Saudi investments in the U.S. Trump and Crown Prince Mohammed bin Salman announced commitments totaling hundreds of billions of dollars, with Trump pushing for the total to reach $1 trillion. The event featured appearances by Tesla CEO Elon Musk and Nvidia co-founder Jensen Huang, underscoring the administration’s focus on artificial intelligence and technology partnerships with Saudi Arabia.
For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.