Treasury Secretary Bessent calls for a review of ‘the entire’ Federal Reserve
On Monday, Treasury Secretary Scott Bessent proposed a review that would go beyond the discussions on the construction of the Federal Reserve and the general function of the Federal Reserve.
During an interview of CNBC’s “Squawk Box” “is to examine all the federal reserve institution and whether they are successful.” He said. “Has he succeeded in the establishment of the establishment? [Federal Aviation Administration] And we were making so many mistakes, we would go back and look at it. “
Comments come in the midst of an intense conflict between the White House and the Central Bank.
Last week, President Donald Trump’s FED President Jerome Powell saw contradictory reports on whether he was ready to ignite. The White House’s reports showed that a movement had come, but Trump rejected what a legally controversial movement would be.
Bessent reports both at the center of the discussion as a potential successor of the Fed and to a mediator who wants to determine Trump from transferring Powell.
“President Trump asks for a series of opinions and then makes a decision,” when he asked the Wall Street Journal report, he helped him convince Trump to hold his hand in Powell. He said. “So he gets a lot of inputs and his decision at the end of the day.”
Trump demanded that the Fed significantly reduced its measurement over a night, which is unlikely, regardless of the chair.
In addition, the administration has recently criticized the Fed for cost -effectiveness with a $ 2.5 billion renovation for its two buildings in Washington. Administrative authorities are reportedly planned to see the project in person.
In interest rates, Bessent supported the idea that the FED should probably be facilitated by inflation.
“They were afraid to come together on tariffs, and we’ve seen very little if there was any inflation.” He said. “We had great inflation numbers. So, you know, I think they can’t get out of a certain mentality. I don’t know what these doctors do there.”
In December, the Fed recent cutting rates completed a short facilitating cycle, which reduces the Fed funds points to a full percentage. However, the Fed has increased both mortgage rates and treasury returns.
Market pricing shows that the Fed will probably cut it again in September.
