Trump’s Daily Fed Obsession: Treasury Secretary Grilled, Powell’s Job on the Line

The Oval Office has a new fixation—and it's not just the stock ticker. Sources report a relentless daily inquisition targeting the Federal Reserve's every move, with Jerome Powell's chair looking shakier by the session.

The Treasury's Morning Briefing

Forget the P&L statements—the first question each day now cuts straight to monetary policy. The Treasury Secretary faces a firing line of queries on interest rates, balance sheet moves, and the perceived pace of tightening or easing. It's a direct channel from Pennsylvania Avenue to the Eccles Building, bypassing the Fed's cherished independence.

Powell's Precarious Perch

Whispers in the West Wing aren't subtle. The desire for a leadership change at the central bank isn't a contingency plan—it's a stated objective. The friction points are classic: growth versus inflation control, political timelines versus economic cycles. The chair's term becomes a countdown clock watched by markets and marinas alike.

Markets on Edge

Every raised eyebrow from the White House sends tremors through the bond pits. Traders now parse presidential tweets alongside FOMC minutes, weighing operational independence against very public pressure. The result? A volatility premium baked into every Treasury auction—because nothing says 'stable store of value' like a political tug-of-war over the money printer.

The ultimate power play isn't just appointing a Fed chair; it's making the current one answer to a higher power daily. For an institution built on data-driven deliberation, the new morning routine feels less like governance and more like a hostile takeover—because in high finance, the most dangerous inflation is often in executive egos.

Scott calls for overhaul as Powell investigation heats up

The Treasury Secretary admitted he doesn’t have much information about the case, but he used the opportunity to drag the Fed for how it operates.

He said the place “needs a lot of work.” Then he doubled down. “It does need a thorough overhaul,” he told Larry Kudlow. According to Scott, the Federal Reserve affects every American, but there’s “no accountability” inside that building.

He said this scandal might finally push his long-standing demand for an internal investigation. “I’ve been calling for an internal investigation or an internal review of all this, so perhaps this will push that idea along,” Scott said. This isn’t just about drywall and plumbing anymore. It’s turned into a war over who controls monetary policy.

Powell made his own statement. “This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether instead monetary policy will be directed by political pressure or intimidation,” he said in a video. But that didn’t stop the firestorm.

Trump, a longtime Powell critic, has threatened to fire him before. He’s accused Powell of acting politically, even though the role of Fed Chair is supposed to be nonpartisan. This time, the problem is bigger than just politics. A criminal charge could remove Powell permanently.

Scott was also asked about who might take over. He confirmed the final round of interviews is done. But TRUMP isn’t telling him much. “President Trump hasn’t shared his thoughts with me,” he said. “What I can tell you is he’s been very deliberate. He has asked exactly the questions that I think you and I and the markets would want to ask.”

Kevin Hassett had been seen as a top contender to replace Powell. But Trump made it clear that’s off the table. “I actually want to keep you where you are, if you want to know the truth,” he told Hassett directly at the WHITE House. That pretty much ended Hassett’s chances.

Scott confirmed it. “If that’s the president’s prerogative, then so be it,” he said. As far as who gets the job, it’s still anyone’s guess. “Only the president knows. … It’s his prerogative. He has been thinking about this almost since day one of Trump 2.0,” Scott said.

The decision is expected in January. Scott said he thinks it’ll happen “either before he leaves for Davos or when he returns.”

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