by Treasury secretaries are expected to refrain from meddling in the Federal Reserve’s operations. The Fed is an autonomous organization that, in the opinion of most policymakers, helps the economy by being immune to political pressures.
President Trump has stated unequivocally that he does not share that opinion. He has publicly considered replacing Jerome H. Powell, whom he personally selected to be the Fed’s chair during his first term, with someone who will follow his instructions and cut interest rates without considering the impact on the economy.
As a result, the hiring process has started in earnest, and Treasury Secretary Scott Bessent, who is one of numerous candidates even though he is in charge of the search, has demonstrated a renewed readiness to criticize the central bank’s policies.
Mr. Bessent has stated that he enjoys his position at Treasury and is willing to perform any task that Mr. Trump requests. However, he has indicated in recent weeks that he would advocate for the lower borrowing costs that Mr. Trump has been calling for if he were in charge of the Fed.
He has echoed the president’s grievances in public, saying that the Fed has been too sluggish to lower interest rates and that its members are misinterpreting how tariffs will affect pricing. Its policymakers have generally maintained that taxes of the type that Mr. Trump has threatened or implemented will hinder the nation’s economic growth and increase consumer costs.
Mr. Bessent stated on The Ingraham Angle on Fox News last month that he believes the Fed is also affected by the tariff derangement syndrome.
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