Dismiss Powell? Within the Trump administration, Bennett is a key opponent, and has "reasons and evidence."

Although President Trump has repeatedly shown his intention to dismiss Powell, key figures within his inner circle, such as Treasury Secretary Mnuchin, have become the main internal voices of opposition. According to reports from the media on the 20th, Mnuchin told Trump that given the current strong economic performance and positive market response to Trump's policies, it is not necessary to dismiss Powell. He also reminded Trump that Federal Reserve officials have signaled a possible interest rate cut twice before the end of the year, which is already moving in the direction Trump hopes for. Mnuchin also told Trump that even if the president forcibly dismisses Powell, Powell may file a lawsuit, and this legal battle may drag on until next spring - by which time Powell's term will already be ending. In addition to the current obstacles, Mnuchin also told the president that he is already on the path to shaping the Federal Reserve. The term of Federal Reserve Board member Adriana Kugler will end in January next year, and Powell's term as chair will end in May. By then, Trump will be able to fill one or two vacant positions. This internal advice comes at a time when speculation about firing Powell has resurfaced last week. According to a previous article by Wall Street News, a senior White House official said on Wednesday that the president hinted to Republican lawmakers at a recent meeting that he might soon take action to dismiss Powell, although Trump himself later denied the plan to reporters that evening. This incident briefly roiled the financial markets. Many investors believe that trying to replace central bank officials due to policy disagreements may gradually erode the independence of the Federal Reserve, which has the authority to take unpopular measures to maintain low inflation when necessary. Mnuchin: Dismissal is neither necessary nor beneficial This is not the first time Mnuchin has played a "brake" role. According to media reports in April, when Trump publicly discussed "terminating" Powell's term, Mnuchin and Commerce Secretary Ross advised the president not to attempt to dismiss him. In the recent discussions, Mnuchin took a more cautious stance. Trump said on Tuesday that he found Mnuchin's attitude "reassuring." Some advisors around Trump also admit that any attempt to remove Powell could create a long-lasting vacuum in the leadership. Because there is no guarantee that the Senate, usually in recess in August, will quickly confirm a successor. Forcing the dismissal of Powell in the face of several Republican senators' clear opposition would only make the confirmation process for any successor more difficult. Under current law, during the absence of the chair, the vice chair acts in his place. The current vice chair, Philip Jefferson, is an official appointed by Biden and an ally of Powell. These advisors admit that dismissing Powell faces obstacles in both financial markets and practical operations, may lead to a "double loss" for the Trump administration: bearing the cost of negative market reactions and not immediately gaining influence over monetary policy. In addition to direct confrontation, the Trump administration is also considering another path. Mnuchin suggested to Trump that he will soon have the opportunity to leave his mark on the Federal Reserve. The term of Federal Reserve Board member Adriana Kugler will end in January next year, and Powell's term as chair will end in May next year, providing Trump with one to two nomination vacancies in early next year. Last week, Mnuchin said in an interview: "There are many excellent candidates, and we will see how quickly progress is made. It is President Trump's decision and will proceed at his pace." It is worth noting that according to some insiders cited by the media, advisors may consider a broader range of candidates recently, in the hope of encouraging more voices to pressure the Federal Reserve to cut interest rates. Another front: Vought-led "pressure campaign" In contrast to Mnuchin's cautious attitude, White House budget director Russell Vought has been leading a campaign to pressure Powell, with its focus on the renovation project at the Federal Reserve headquarters. The project has experienced significant cost overruns, which the Federal Reserve attributed to rising material costs and unexpected construction challenges. According to media reports, Vought's strategy may be to find legal grounds to dismiss Powell "for cause" to bypass certain legal protections. As part of this plan, Trump recently appointed three advisors to a local planning committee, one of whom works directly for Vought. This committee had approved the Federal Reserve's design plans in 2021. These advisors and Vought have threatened to conduct a more comprehensive audit of the Federal Reserve's construction and financial decisions. They have also requested to visit the Federal Reserve's construction site, but due to time constraints, this visit has not yet occurred, and they have requested a rescheduling. Wall Street Journal reporter Nick Timiraos believes that the controversy surrounding the Federal Reserve's renovation has essentially shifted this struggle from a policy debate to a more public opinion-oriented forum, with Trump trying to erode Powell's public trust, force him to make concessions on interest rate policy, or even resign ultimately. As for whether this pressure campaign is intended to pave the way for a "for cause" dismissal of Powell, Vought himself has been ambiguous. This article is reproduced from "Wall Street News," written by Zhang Yaqi; GMTEight editor: Wang Qiujia.