At the Saudi-US Investment Forum on November 20, President Donald Trump unexpectedly issued a harsh ultimatum to Treasury Secretary Scott Bessent, directly related to the US's interest rate reduction orientation. During the conversation with Mr. Bessent, Trump mentioned Fed Chairman Jerome Powell in a sarcastic and critical tone, showing his deep disappointment with the current monetary policy.
Trump said outright that Bessent needed to “XEM at Powell,” even suggesting that the Fed Chairman had “incompetence problems” and had made poor decisions during a turbulent economic period. Trump also emphasized that he “wanted to fire Powell a long time ago” and accused the Fed of wasting billions of dollars on a small-scale building — a detail he used to illustrate the inefficiency of the Fed’s operating apparatus.
According to people present at the event, Trump turned to warn Bessent that interest rates were “unacceptably high,” and if the Treasury Department did not push forward with lowering rates, he would “change personnel” — a threat clearly aimed at the Treasury Secretary himself.
It is worth noting that Bessent himself had previously advised the President to let Powell complete his term until May 15, 2026, to maintain market stability. However, Commerce Secretary Howard Lutnick had a completely opposite view, as he was said to “want to fire Powell as soon as possible”. The opposing views within the administration have made the public pay more attention to the future of the Fed during Trump’s second term.
The current context is also particularly sensitive as the US market is expecting more aggressive interest rate cuts to support growth. Over the past few months, many investors have argued that the Fed has been too slow to act, causing market confidence to wane. Therefore, Trump’s announcement in Saudi Arabia immediately created a new wave of discussion about the possibility of major personnel changes in the US financial and monetary sector.
A recent story circulating among analysts is that Trump is XEM reestablishing “cost discipline” within federal financial agencies. The rumor stems from his repeated references to alleged spending excesses under Powell, particularly related to Fed office projects. While there has been no official confirmation, this suggests the President is preparing a more aggressive strategy to tighten the Federal Reserve’s regulatory apparatus.
