Nick's latest tweet: Why did Bessent advise Trump against firing Powell? Here are a few reasons: ) 1) Federal Reserve officials have hinted that they may cut rates twice before the end of the year: Powell doesn't need to be fired to lower rates, so why take the risk? 2) Firing Powell could trigger market panic: Investors might feel that the president is interfering with monetary policy, which would be detrimental to the independence of the financial system. 3) Legal complications: Powell could sue, and the lawsuit might drag on until spring—just as Powell's term is ending. 4) If Powell is removed, there's no guarantee that a successor will be confirmed quickly. Under current law, the Fed's vice chair exercises authority in the absence of the chair. Vice Chair Jefferson was appointed by Biden and is also an ally of Powell. It’s clear that Bessent isn’t particularly supportive of Powell, but rather weighing the pros and cons to tell Trump that doing this might not yield the desired outcome, especially since time is on Trump’s side; with each passing day, Powell's term gets shorter. I have to say, having a rational adult like Bessent around Trump is quite something.