Scott Besent said that the Federal Reserve made several “mistakes” in recent months, and that a review of its directive is necessary.
The US Treasury Secretary, Scott Besent, He suggested “examining” the performance of the Federal Reserve (Fed) and its Board of Governorsand avoided commenting on a recent article where he advised the president Donald Trump of not forcing an exit from the president of the Central Bank, Jerome Powell.
This Monday, the Trump administration official told CNBC that Powell’s departure from Fed would be “President’s decision”but that the “errors” of the institution and its “alarmism on tariffs” despite their, so far, little or non -existent inflation effect should be reviewed.
“I think what we have to do is examine the entire institution of the Federal Reserve and if they have succeeded”said Besent, who said he would offer an opening speech at the US Central Bank on Monday night at the beginning of a conference on regulation, Reuters reported.
“If we were in the Federal Aviation Administration (FAA) and we had so many mistakes, we would go back and analyze why. Why has this happened? All those doctorates from there, I don’t know what they do, “he added.
Trump and Powell.jpg
In recent months, Trump repeatedly lashed out at Powell and urged him to resign for the reluctance of the Fed to apply cuts in interest rates. The president also pointed to a renewal of US $ 2,500 million from the headquarters of the Central Bank in Washington that exceeded his budget, suggesting that he could have fraud and that this could be a reason to dismiss Powell.
Jerome Powell defends himself from accusations for exceeding the budget
Powell responded last week to the information demands of a Trump administration official on the project overruns, saying that he was high and involved a series of safety improvements and the elimination of hazardous materials.
For its part, Besent did not pronounce on the predictions that US financial markets could collapse if Powell was dismissed.
The next two -day meeting of the Federal Open Market Committee (FOMC) It will take place between 29 and 30 of the current month. So far the FOMC decided to keep the rates in the range between 4.25% and 4.50% during all the meetings it held throughout the year.
While it is not known for sure if Fed will reduce interest rates, as Trump claims to Powell, economists do foresee two cuts before the end of the year.
Powell’s mandate as president ends in May 2026, although he will remain as governor of the Fed until January 2028.
Source: Ambito
