close video Powell is trying not to let the bond market get too far ahead of the Federal Reserve, expert says
KPMG chief economist Diane Swonk discusses the Federal Reserve’s response to inflation on ‘The Claman Countdown.’
Federal Reserve Chair Jerome Powell will serve out the remainder of his first term in charge of the U.S. Central Bank, according to President-elect Trump's pick for Treasury secretary.
Hedge fund manager Scott Bessent told CNBC that he is "in complete agreement" with Trump "that Jay Powell will serve out his term." Bessent spoke to the outlet after meeting with Sen. Mike Crapo, R-Idaho, as he visits with senators ahead of his confirmation hearing to be the next head of the Treasury Department.
Bessent's comments affirm what Trump himself said in an interview with NBC's Kristen Welker on Sunday. Though he has criticized Powell for keeping interest rates high — a move the Fed argues is needed to keep inflation in check — Trump said he has no plans to attempt to fire Powell or pressure him to resign once he returns to office in January.
TRUMP SAYS HE WON'T FIRE FED CHAIR JEROME POWELL
Federal Reserve Board Chairman Jerome Powell speaks during a news conference after a Federal Open Market Committee meeting in Washington, D.C., on Jan. 29, 2020. (Samuel Corum/Getty Images / Getty Images)
"No, I don't think so," Trump told Welker after she asked whether he would fire the Federal Reserve chairman. "I don't see it. But I don't— I think if I told him to, he would. But if I asked him to, he probably wouldn't. But if I told him to, he would."
Bessent, who is CEO for Key Square Group LP, has also voiced criticism of Powell, but unlike Trump, has argued Powell should have kept interest rates higher to stave off inflation.
FED PRESIDENT SAYS NEXT MOVE LIKELY TO LOWER RATES, BUT TIMING UNCERTAIN
Scott Bessent, founder and CEO of Key Square Group LP, appears during an interview in Washington, D.C., on June 7. (Stefani Reynolds/Bloomberg via Getty Images / Getty Images)
"If only Powell had refrained from signaling rate cuts in December and stuck to the "higher for longer" script, the economy could have slowed sufficiently to allow actual rate cuts in the coming months," Bessent wrote in a May op-ed for FOX Business. "Undoubtedly, the Fed will still be under tremendous political pressure to do so ahead of the November election, but rate cuts are likely off the table indefinitely with inflation so high."
TRUMP NOMINATES SCOTT BESSENT AS TREASURY SECRETARY; PICKS RUSS VOUGHT TO LEAD BUDGET OFFICE
President-elect Trump has said he will not attempt to fire Federal Reserve Chair Jerome Powell once he takes office in January. (Joe Raedle/Getty Images / Getty Images)
Powell's current term in office is set to expire in 2026. Trump appointed Powell to a four-year term overseeing the Fed in 2018, and President Biden reappointed him to another term in 2022.
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Powell has indicated that Trump does not have the legal authority to force him out of office early and has said he would not resign if asked to do so.
Sir Keir Starmer will join other European leaders in Kyiv on Saturday for talks on the “coalition of the willing”.
The prime minister is attending the event alongside French President Emmanuel Macron, recently-elected German Chancellor Friedrich Merz and Polish Prime Minister Donald Tusk.
It will be the first time the leaders of the four countries will travel to Ukraine at the same time – on board a train to Kyiv – with their meeting hosted by President Volodymyr Zelenskyy.
Image: Sir Keir Starmer, Emmanuel Macron and Friedrich Merz travelling in the saloon car of a special train to Kiev. Pic: Reuters
Military officers from around 30 countries have been involved in drawing up plans for the coalition, which would provide a peacekeeping force in the event of a ceasefire being agreed between Russia and Ukraine.
Ahead of the meeting on Saturday, Sir Keir, Mr Macron, Mr Tusk and Mr Merz released a joint statement voicing support for Ukraine and calling on Russia to agree to a 30-day ceasefire.
Image: Sir Keir and Volodymyr Zelenskyy during a meeting in March. Pic: AP
“We reiterate our backing for President Trump’s calls for a peace deal and call on Russia to stop obstructing efforts to secure an enduring peace,” they said.
“Alongside the US, we call on Russia to agree a full and unconditional 30-day ceasefire to create the space for talks on a just and lasting peace.”
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2:21
Putin’s Victory Day parade explained
The leaders said they were “ready to support peace talks as soon as possible”.
But they warned that they would continue to “ratchet up pressure on Russia’s war machine” until Moscow agrees to a lasting ceasefire.
“We are clear the bloodshed must end, Russia must stop its illegal invasion, and Ukraine must be able to prosper as a safe, secure and sovereign nation within its internationally recognised borders for generations to come,” their statement added.
“We will continue to increase our support for Ukraine.”
The European leaders are set to visit the Maidan, a central square in Ukraine’s capital where flags represent those who died in the war.
They are also expected to host a virtual meeting for other leaders in the “coalition of the willing” to update them on progress towards a peacekeeping force.
This force “would help regenerate Ukraine’s armed forces after any peace deal and strengthen confidence in any future peace”, according to Number 10.
If you want a very visual representation of the challenges of transatlantic diplomacy in 2025, look no further than Oslo City Hall.
Its marbled mural-clad walls played home to a European military summit on Friday.
In December – as it does every year – it will host the Nobel Peace Prize ceremony. It’s an award Donald Trump has said he deserves to win.
But while the leaders gathering in the Norwegian capital may not say it publicly, they all have a very different perspective to the US president on how to win the peace – particularly when it comes to Ukraine.
Image: Sir Keir Starmer at a summit in Oslo. Pic: PA
So far, Sir Keir Starmer has managed to paper over these foreign policy gaps between the US and Europe with warm words and niceties.
But squaring the two sides off on trade may be more difficult.
The US-UK deal announced on Thursday contained no obvious red flags that could scupper deeper trade links with the EU.
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2:42
PM defends UK-US trade deal
However, that’s in part because it was more a reaction and remedy to Mr Trump’s tariff regime than a proactive attempt to meld the two countries together.
Laced with party-political venom, yes, but the Tory leader Kemi Badenoch is getting at something when she says this agreement is “not even a trade deal, it’s a tariff deal and we are in a worse position now than we were six weeks ago”.
There may be more to come though.
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2:45
How good is the UK-US deal?
The government will talk up the possible benefits, but there are risks too.
Take the Digital Services Tax – much hated by the Trump White House as an unfair levy on US tech firms.
Despite the apparent pitch-rolling from the government, that was left untouched this week.
But asked to rule out changes in the future, the prime minister was non-committal, simply saying the current deal “doesn’t cover that”.
For trade expert David Henig, the potential flashpoints in the transatlantic Venn diagram Downing Street is trying to draw around food standards, digital regulation and services.
“It is a tricky balancing act, at this stage it looks like the UK will go more with the EU on goods regulations, but perhaps a little bit more with the US on services regulations,” he said.
For veterans of the post-2016 Brexit battles, this may all sound like Labour embracing the Boris Johnson-era mantra of “cakeism” – or trying to have it both ways.
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Sir Keir Starmer will join other European leaders in Kyiv on Saturday for talks on the “coalition of the willing”.
The prime minister is attending the event alongside French President Emmanuel Macron, recently-elected German Chancellor Friedrich Merz and Polish Prime Minister Donald Tusk.
It will be the first time the leaders of the four countries will travel to Ukraine at the same time – on board a train to Kyiv – with their meeting hosted by President Volodymyr Zelenskyy.
Image: Sir Keir Starmer, Emmanuel Macron and Friedrich Merz travelling in the saloon car of a special train to Kiev. Pic: Reuters
Military officers from around 30 countries have been involved in drawing up plans for the coalition, which would provide a peacekeeping force in the event of a ceasefire being agreed between Russia and Ukraine.
Ahead of the meeting on Saturday, Sir Keir, Mr Macron, Mr Tusk and Mr Merz released a joint statement voicing support for Ukraine and calling on Russia to agree to a 30-day ceasefire.
Image: Sir Keir and Volodymyr Zelenskyy during a meeting in March. Pic: AP
“We reiterate our backing for President Trump’s calls for a peace deal and call on Russia to stop obstructing efforts to secure an enduring peace,” they said.
“Alongside the US, we call on Russia to agree a full and unconditional 30-day ceasefire to create the space for talks on a just and lasting peace.”
Please use Chrome browser for a more accessible video player
2:21
Putin’s Victory Day parade explained
The leaders said they were “ready to support peace talks as soon as possible”.
But they warned that they would continue to “ratchet up pressure on Russia’s war machine” until Moscow agrees to a lasting ceasefire.
“We are clear the bloodshed must end, Russia must stop its illegal invasion, and Ukraine must be able to prosper as a safe, secure and sovereign nation within its internationally recognised borders for generations to come,” their statement added.
“We will continue to increase our support for Ukraine.”
The European leaders are set to visit the Maidan, a central square in Ukraine’s capital where flags represent those who died in the war.
They are also expected to host a virtual meeting for other leaders in the “coalition of the willing” to update them on progress towards a peacekeeping force.
This force “would help regenerate Ukraine’s armed forces after any peace deal and strengthen confidence in any future peace”, according to Number 10.