“Bessent is trying to show Trump there is a path to get what he wants without unnecessary market turmoil,” said Stephen Myrow, managing partner at Beacon Policy Advisors. That path would involve allowing Powell to finish out his term as chair and stepping down from the Federal Reserve board once his chairmanship is up.

Treasury Secretary Scott Bessent is taking aim at both the Federal Reserve and the rules the Fed enforces as a supervisor of big banks but making it clear he doesn't think Fed chair Jerome Powell needs to step down immediately.

The Journal on Sunday published a report claiming that Bessent had recently made his case to Trump against Powell’s removal, citing potential effects on the economy, the legal challenges such a decision would face,