Trump vs. Zerome Powell: Scott Besant Softcore Tone; Fed Chief ‘should not go down now’
US Treasury Secretary Scott Besant said on Tuesday that he did not see any immediate reason to step into Federal Reserve President Jerome Powell. It comes a day later when Besent publicly called for a complete review of the operation of the fed beyond its main role in determining the interest rates. Talking to Fox Business, Besent said, “There is nothing that tells me that he should step down now.” He also said that Pavel’s word ended in May 2026 and should be allowed to complete it – until he chooses the option to leave early. The comment follows the increasing pressure from the administration of US President Donald Trump to the Fed which cuts interest rates. Trump is rapidly important for Powells in recent weeks, especially on the renewal of $ 2.5 billion of the central bank’s own headquarters. While Trump said that Powell has done “bad things”, he also said that it is not possible that he would remove it before his term ends.
Late on Monday night, the Callsent posted on X for the “entire internal review” of Fed’s non-monetary operations. He said that the independence of the bank was important for economic stability, but warned that it was being threatened by “mandate creep”, saying that Fed was taking on actions outside its main responsibilities. He did not give the example. Earlier on CNBC, Bessent said that the entire Federal Reserve should be evaluated for effectiveness. Meanwhile, Fed Vice Chair Michelle Boman defended the bank’s independence and stated that it is “very important” to establish monetary policy. Assessing the impact of Trump’s new tariff, Fed has kept the interest rates stable this year. Trump argues that the rates should be three percent less, saying that it will reduce the debt cost. But the Fed officials are cautious, warning that rate cuts may soon raise consumer prices.The Fed holds its next policy meeting at the end of the month, and is expected to keep the rates widely unchanged again.
