"Scott urges against firing... Howard would have said to kick him out immediately"
Tariff dividend policy reaffirmed amid growing Republican opposition
On November 19 (local time), President Donald Trump of the United States stated that he wants to dismiss Jerome Powell, Chair of the Federal Reserve (Fed), but Treasury Secretary Scott Bessent is dissuading him from doing so.
At the U.S.-Saudi Arabia Investment Forum held in Washington, D.C. that day, President Trump said, "To be honest, I want to fire him (Chair Powell) right now."
Since taking office in January this year, he has continuously pressured Chair Powell to aggressively lower interest rates, repeatedly urging his dismissal, and once again emphasized his position on the matter that day.
President Trump also mentioned that Secretary Bessent has so far prevented Powell's dismissal. He said, "Scott (Secretary Bessent) says, 'Please don't fire him. He only has three months left,'" adding, "But I still want to kick him out right now."
He also referred to Howard Lutnick, Secretary of Commerce and a key figure in the administration, along with Secretary Bessent, saying, "If it were Howard, he would have said, 'Fire him immediately.'" Secretary Lutnick competed with Secretary Bessent for the position of the first Treasury Secretary in Trump's second administration. Unlike the market-friendly and flexible Secretary Bessent, Secretary Lutnick is known for his hardline stance and is called "Little Trump."
President Trump then joked pointedly, "The only thing Scott is messing up is the Fed," adding, "Scott, interest rates are too high. If you don't fix it quickly, I'll fire you immediately as well."
Secretary Bessent is currently leading the process to select a successor to Chair Powell, whose term ends in May next year. He was once considered a candidate for the next Fed Chair but was excluded from the pool after expressing his intention to remain as Treasury Secretary. Given President Trump's deep trust in Secretary Bessent, many interpret his "firing" remarks as being closer to a joke. Currently, Christopher Waller, a Fed Governor; Kevin Hassett, Chair of the White House National Economic Council (NEC); and Kevin Warsh, former Fed Governor, are being strongly considered as candidates for the next Fed Chair.
President Trump also reaffirmed his plan to pay out "tariff dividends" that day. He reiterated his previous stance, stating, "We will pay at least $2,000 in dividends to low- and middle-income households," and emphasized that the United States will distribute $2,000 per person to Americans based on tariff revenues.
However, there are signs of negative sentiment within the Republican Party regarding the payment of tariff dividends. Legislative procedures in Congress are essential to advance the tariff dividend policy.
Jodey Arrington, Chair of the House Budget Committee, told reporters that day that wealth should be returned to the people through "growth-friendly policies," and pointed out that tariff dividends risk causing inflation. He also stated that he had conveyed to Secretary Bessent his opinion that tariff revenues should be used to reduce the fiscal deficit.
John Thune, Senate Republican Whip, also mentioned the previous day that tariff revenues should be used effectively, referencing fiscal deficit reduction. Senator Rand Paul (Republican-Kentucky) strongly criticized the idea, saying, "It would be madness to send people money while we are running deficits."
Following the recent defeat in the mini-local elections, there is growing sentiment within the Republican Party opposing President Trump's electoral district realignment and tariff dividend initiatives, with some assessments indicating that the White House's influence within the party is weakening.
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