United States Treasury Secretary Scott Bessent stated on Monday that the Federal Reserve is and should remain independent. However, Bessent also said that the central bank had “made a lot of mistakes.” His comments come amidst ongoing criticism from former President Donald Trump regarding the Fed’s monetary policy decisions.
Trump has repeatedly criticised the Fed and its chairman, Jerome Powell, for allegedly not lowering interest rates sufficiently. Trump also recently targeted Powell over the expensive renovation of the Federal Reserve’s headquarters in Washington. The Federal Reserve System is the central banking system of the United States. It conducts the nation’s monetary policy, regulates banking institutions and maintains the stability of the financial system.
Speaking to Reuters, Bessent addressed the issue directly. “The Fed should be independent. The Fed is independent, but I also think that they’ve made a lot of mistakes,” he said. Bessent also defended President Trump’s right to potentially dismiss governor Lisa Cook due to allegations of mortgage fraud. These remarks highlight continued scrutiny of the Federal Reserve’s operations and leadership.
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