Sources say Besant urged Trump not to dismiss Powell.

On July 20, according to The Wall Street Journal, informed sources said that U.S. Treasury Secretary Basant recently suggested privately to Trump that he should not attempt to remove Fed Chairman Powell. Basant's reasoning was mainly focused on the following points: the potential impact on the economy and the markets, the Fed may lower interest rates later this year anyway, and removal could face political and legal obstacles. Basant believed that firing Powell was unnecessary because the economy was performing well, the market responded positively to the president's policies, and Fed officials had already signaled that they might lower rates twice before the end of the year. If Powell were to be fired before the end of his term, he could file a lawsuit, which might drag on until spring next year, by which time Powell's term would also end. Basant also pointed out that the term of Governor Kugler would end in January next year, while Powell's term would end in May, which would leave Trump with one or two vacancies to fill at the beginning of next year. Basant's cautious stance contrasted with some other government officials who were considering more aggressive strategies. Trump stated to reporters on Tuesday that he found Basant "reassuring."