“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.

Lawrence Summers backed Treasury Secretary Scott Bessent’s questioning of the Federal Reserve’s non-monetary policy activities, saying that there were some areas that are distinct from the broader issue of central bank independence.