“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.

The president’s repeated criticism of the Fed and threats to fire Powell have stoked fears on Wall Street that the central bank’s independence risks being eroded.