Scott Bessent, President Donald Trump's secretary of the treasury, underscored on Fox News deflected the issue of President Donald Trump's efforts to remove Federal Reserve Chair Jerome Powell but did not specifically address the scenario in which the president could attempt to fire him, despite the law making its extremely difficult.
Bessent outlined an aggressive economic strategy Tuesday, projecting GDP growth to hit 3% by early 2026 while targeting $2.8 trillion in tariff revenue over a decade and scheduling critical trade negotiations with China for next week,
Manufacturing in America is back! pic.twitter.com/C6qcmmw0wp
— Gunther Eagleman™ (@GuntherEagleman) July 22, 2025
He advocated for China to open its markets and focus on consumption, noting, "If we can do more manufacturing, China does more consumption that would be a home run." Bessent was to meet Chinese officials in Stockholm on Monday and Tuesday to address these objectives, alongside talks on aid for Ukraine and oil trade involving Russia and Iran.
Addressing the Federal Reserve, Bessent commented on Chair Jerome Powell's role, stating, "Nothing tells me he should step down right now," but suggested, "If he wants to leave early he should." With Powell's term ending in May, Bessent noted he could complete it if he chooses. He also proposed an internal review of the Federal Reserve to evaluate its performance.
Bessent projected strong economic growth, declaring, "By Q1 2026 going to see GDP growth at 3% or more." He emphasized the potential of tariffs, estimating annual revenue of "$300 billion," or about 1% of GDP, with a cumulative $2.8 trillion possible over ten years.
On other trade fronts, Bessent reported positive progress in discussions with Japan. He anticipated imminent trade agreements, stating, "Will see deals in next couple of days." For Russia, he expects tough negotiations with G-7 counterparts and plans to discuss oil tariffs with Europeans. Regarding the August 12 tariff deadline with China, Bessent said, "Will be in talks Monday and Tuesday," and predicted, "Will likely work out an extension."
