Source: U.S. Treasury Secretary Bensont urged Trump not to remove Fed Chairman Powell

On July 20, according to Jinshi, citing the Wall Street Journal, people familiar with the matter said that U.S. Treasury Secretary Benson has privately advised Trump in recent days that he should not try to remove Federal Reserve Chairman Powell. Benson's reasons focused on several themes: the possible impact on the economy and the market, the prospect of the Fed's interest rate cut later this year, and the political and legal obstacles such a move might face. Benson believes that it is not necessary to fire Powell because the economy is performing well, the market has responded positively to the president's policies, and Federal Reserve officials have signaled that they may cut interest rates twice before the end of the year. If Powell is fired before the end of his term, Powell may file a lawsuit, and the lawsuit may be delayed until next spring, when Powell's term will also end. Benson also pointed out that Governor Kugler's term will end in January next year and Powell's term will end in May, which will leave Trump with one or two vacancies to fill early next year. Benson's cautious attitude contrasts with some other government officials who are considering more aggressive strategies. Trump told reporters on Tuesday that he felt Benson was "reassuring." [PANews]