Connect with us

News

‘Full Time Babysitter’: Treasury Secretary Urges Caution After Trump Fed Chair Threat

Published

on

President Donald Trump’s pre-dawn post shook investors’ confidence on Thursday, as he railed against the Chairman of the Federal Reserve, and called for his “termination.” Hours later, the White House insisted the President was not suggesting he would be firing Jerome Powell, whom he installed during his first term, but the Treasury Secretary Scott Bessent reportedly is urging caution.

Pointing to news about the European Central Bank, Trump at 6:12 AM exploded:

“The ECB is expected to cut interest rates for the 7th time, and yet, ‘Too Late’ Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete ‘mess!'” Trump exclaimed.

“Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS,” he insisted, although some consumers may disagree. “Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now.”

“Powell’s termination cannot come fast enough!” Trump concluded.

READ MORE: ‘Stunning Admission’: GOP Senator Says Colleagues ‘Are All Afraid’ of ‘Retaliation’

The White House quickly jumped in.

“A White House official tells me today this post should not be seen as a threat to fire Powell,” reported CNBC’s Megan Cassella. “It’s more of an airing, or re-airing, of grievances and frustrations with the central bank chair. And the President is looking forward to the scheduled end of Powell’s term.”

Reuters reported that Christopher Hodge, Chief US Economist for Natixis, said: “So previously I thought the odds were very much against Trump trying to remove Powell, but my confidence has faded. Trump seems more comfortable than expected with a slowing economy and equity volatility and the tariff policies are much more onerous than anticipated, even if they have been walked back a bit. The bottom line is the parameters of potential policy outcomes has widened and while I still think Powell will be retained until his term ends, I am less certain that I was previously.”

Journalist and author Charles Fishman called Trump’s post, “a frontal attack on Jay Powell, chairman of the Federal Reserve, whose independence is enshrined in law—and who is one of the few forces holding the US economy together in the face of White House tariff chaos.”

“Trump can’t fire Powell. But is shouting like he might try,” Fishman writes.

Trump may try, but some say he may need help from the U.S. Supreme Court.

Meanwhile, barely two weeks ago, reports stated Bessent was thinking of quitting.

“Treasury Secretary Scott Bessent may be planning to cut and run after Donald Trump’s disastrous ‘reciprocal tariff’ announcement earlier this week,” The New Republic reported. “During an appearance on MSNBC’s Morning Joe Friday, contributor Stephanie Ruhle reported that the key Cabinet member is already looking for an escape hatch.”

“My sources say that Scott Bessent is kind of the odd man out here and, in the inner circle that Trump has, he’s not even close to Scott Bessent or listening to him,” Ruhle said, TNR reported. “Some have said to me, he’s looking for an exit door to try to get himself to the Fed, because in the last few days he’s really hurting his own credibility and history in the markets.”

Last week, things apparently got more heated.

READ MORE: ‘Strategically Disastrous’: How JD Vance Is Harming America’s Foreign Relations

“Wall Street prizes stability, which is why Trump’s shambolic tariff rollout has wiped out trillions of dollars of market value,” Vanity Fair reported last week. “Executives say the on-again, off-again tariffs are evidence of a civil war engulfing Trump’s economic policy team. According to sources close to the White House, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick have been at odds over a tariff plan, with Bessent urging discipline and Lutnick encouraging Trump to go big. ‘The real war is between Howard and Scott,’ one of the sources said.”

And now, Bessent reportedly is  urging caution on firing Powell.

According to a Politico report on Thursday, Bessent “has repeatedly cautioned White House officials that any attempt to fire Federal Reserve Chair Jerome Powell would risk destabilizing financial markets, according to two people close to the White House granted anonymity to share details of private discussions.”

Adding some insight, Politico notes that “Bessent’s private message reinforces what President Donald Trump already knows but comes as the president’s anger with the Fed chair is growing because Powell hasn’t shown signs that he will cut interest rates soon. It also comes against the backdrop of widespread market turmoil over the administration’s far-reaching trade war.”

Not only has Powell not cut interest rates — which he historically has been very caution on doing — but CNN Business reported Thursday afternoon that mortgage rates just saw “the largest one-week jump” min over a year, and are have now climbed to the “highest level in two months as Trump’s tariffs continue to rock markets.”

Responding to Politico’s report, hedge fund founder and chief investment officer Spencer Hakimian writes, “Bessent hating his new job of being a full time babysitter. Just cleaning up Trump, Lutnick, Navarro, etc. diaper all day long.”

READ MORE: ‘Willful Disregard’: Judge Finds ‘Probable Cause’ to Hold Trump Admin in Criminal Contempt

Image via Reuters

There's a reason 10,000 people subscribe to NCRM. You can get the news before it breaks just by subscribing, plus you can learn something new every day.
Continue Reading
Click to comment
 
 

Enjoy this piece?

… then let us make a small request. The New Civil Rights Movement depends on readers like you to meet our ongoing expenses and continue producing quality progressive journalism. Three Silicon Valley giants consume 70 percent of all online advertising dollars, so we need your help to continue doing what we do.

NCRM is independent. You won’t find mainstream media bias here. From unflinching coverage of religious extremism, to spotlighting efforts to roll back our rights, NCRM continues to speak truth to power. America needs independent voices like NCRM to be sure no one is forgotten.

Every reader contribution, whatever the amount, makes a tremendous difference. Help ensure NCRM remains independent long into the future. Support progressive journalism with a one-time contribution to NCRM, or click here to become a subscriber. Thank you. Click here to donate by check.

News

‘Better Without It’: Trump Now Trashes the Deal He Once Called the Best Ever

Published

on

President Donald Trump spent years praising the trade deal he signed into law in 2020, the USMCA — United States–Mexico–Canada Agreement — which was his replacement for NAFTA — the North American Free Trade Agreement.

“America’s great USMCA Trade Bill is looking good,” Trump wrote in 2019. “It will be the best and most important trade deal ever made by the USA.” Declaring it would be good for everybody, he cheered, “we will finally end our Country’s worst Trade Deal, NAFTA!”

One year earlier, Trump said that his USMCA would serve as a means for Mexico to pay for his border wall:

“Mexico is paying for the wall through the many billions of dollars a year that the U.S.A. is saving through the new Trade Deal, the USMCA, that will replace the horrendous NAFTA Trade Deal, which has so badly hurt our Country. Mexico & Canada will also thrive – good for all!”

On Wednesday in Paris, the president gave reporters a different take on his deal, suggesting he would prefer to have no trade deal with America’s top trading partners, Canada and Mexico.

“I think it’s better without it,” Trump said. “I mean, to be honest with you. I’m not a big fan of it.”

He said the reason he had “liked it” was it helped get the U.S. out of NAFTA.

“That is the thing I liked about it the most,” Trump insisted. “We do better without an agreement.”

The president then offered two different scenarios. He said he would rather leave any USMCA extension “unsigned,” but then declared, “I’d rather have it terminated.”

When a reporter explained that those are “different things,” Trump replied, “I would rather not have the agreement, but I may sign it.”

“I would rather not have the USMCA,” he said. “I would prefer not having an agreement, but I’m open to doing it. We’ll see what happens.”

“It’ll be terminated,” he continued, as opposed to it expiring and not being renewed.

“I view it as possibly expiring immediately,” the president said.

The USMCA is up for renewal on July 1, but the U.S. has ruled that date out, Bloomberg News reported. “The US is negotiating on a bilateral basis. Talks with Mexico are ongoing, including sessions this week, while formal talks with Canada have not been launched.”

Last week, Trump said: “We don’t need anything that Canada has, we don’t need anything that Mexico has, but they need everything that we have, and they have to treat us better.”

 

Image via Reuters 

Continue Reading

News

Carville Predicts When Trump Will Resign — and Why

Published

on

President Donald Trump will not serve out his full second term in office, argues political strategist James Carville, but rather, he will resign and “walk away.”

Carville points to two major reasons looming over Trump as to why he believes the 47th president will exit the office.

“I want to be very clear on something,” says Carville. “I’m not doing this as a crazy a—— prediction. I’m doing it because I genuinely think that he will resign next spring.”

“He’s going to walk away because the pain that is coming for him, both the emotional pain and the physical deterioration, you watch it right in front of your eyes,” said Carville. “I don’t have to be a doctor to see this guy can’t move. He can’t get out of a chair. I know what it’s like to be in the 80s. And unlike a lot of people, I know what that job is like, and it’s not compatible. You know, maybe there’s some people 80 who could do that. He’s not one.”

Acknowledging that he is not a medical doctor, Carville does note that he is close to Trump’s age: the president is 80, Carville is approaching 82.

He highlights Trump’s “rate of decline from Election Day to now,” and warns that “it’s not linear. You don’t lose a quarter of a percent a month. When it goes down, it goes quickly, and you can look at him and see how just fat and unhealthy he is.”

The other reason Carville believes Trump will exit the White House next spring: he suggests a tremendous loss in the November midterms for Trump, and explains how devastating that will be.

“I know what it’s like to lose a massive off-year election,” says Carville. “We did in 1994. It’s so monumental. It’s so massive. It hurts so deep. You just can’t imagine it. The entire world around him is going to change after November of this year.”

“People don’t pay attention to you,” says Carville. “They’re making jokes. Everybody knows you’re on a short leash. You got two years left to go. You don’t have any power. Everybody around you is being subpoenaed for everything that you can imagine. Your life is miserable.”

Carville went on to declare, “I’m doubling down on this prediction. He is just going to walk away.”

Trump, Carville predicts, will tell Vice President JD Vance — who would become president should Trump resign — that as president Vance can likely pardon himself. And while there is “some uncertainty as to whether you can do that,” there is “no uncertainty” as to whether a President Vance can pardon Trump and his family.

“So, I’m sticking with my prediction,” says Carville. “I think the son of a b—— is just going to walk away.”

 

Image via Reuters 

Continue Reading

News

‘Five-Alarm Fire Bell at GOP HQ’: Conservative Warns of Brutal November for Republicans

Published

on

Republican National Committee leadership is staring at a “five-alarm fire bell,” conservative analyst Henry Olsen warns, as President Donald Trump’s sinking poll numbers put the GOP’s Senate majority at risk in November.

“The Republicans’ Senate fortunes,” Olsen writes at The Washington Post, “are tied to the man in the Oval Office. If the president can recover his standing even a few points, the GOP will probably retain Senate control. But all bets are off if he remains as unpopular as he is now.”

Olsen, a longtime Republican strategist and a senior fellow at the Ethics and Public Policy Center, explains that at the start of the year the road map for Democrats looked daunting. They had to gain four Senate seats to win the majority, while holding three open seats — Minnesota, New Hampshire and Michigan — that were seen as “far from safe.”

At best, the “most politically favorable remaining states” on the Senate map — Ohio, Iowa and Alaska — “were all carried by Trump by over 10 points. Democrats have not won a Senate seat in a state that red since 2018, when Jon Tester prevailed in Montana and Joe Manchin carried West Virginia.”

The tables have turned, and now it is Republicans who are facing an uphill battle.

Democrats are “leading or statistically tied in all of the seats they need to retain,” and “also lead or are statistically tied in six GOP-held states: Alaska, Iowa, Maine, North Carolina, Ohio and Texas.”

Plus, retired Army Lt. Col. Alexander Vindman, the expected Democratic nominee for Senate in Florida, is ahead of Republican U.S. Senator Ashley Moody, according to one recent poll.

Of course, as Olsen suggests, the campaigns have yet to get into full swing, there is still time, and the Democrats’ Maine nominee, Graham Platner, could be seen as a wild card.

“Perhaps Platner’s troubles will allow Collins to equal or slightly surpass her earlier result, but even then, the vast majority of her support will come from Trump approvers,” says Olsen. “If that total is under 40 percent, as it surely is right now, Collins probably won’t win.”

“But surely no one in the Republican high command thought they would be trailing or tied in 10 critical Senate races at this stage,” writes Olsen. “That sound you hear is a five-alarm fire bell at GOP HQ.”

In today’s polarized era, Olsen notes, many voters back their party rather than the candidate — and a party whose leader is underwater on most key issues weighs on every candidate on the ticket.

 

Image via Reuters 

Continue Reading

Trending

Copyright © 2026 AlterNet Media.