Treasury Secretary Scott Bessent, one of several candidates reportedly being considered by President Donald Trump to potentially replace Federal Reserve Chair Jerome Powell, has publicly stepped up his criticism of the central bank's policies in recent months despite an unwritten rule that treasury secretaries steer clear of interfering with the Fed's operations, The New York Times reports.
He has complained that the Fed has been too slow to cut interest rates and that officials there misunderstand the impact that tariffs will have on prices.
"I guess this tariff derangement syndrome happens even over at the Fed," Bessent said earlier this month on Fox News.
Last week, he questioned Federal Reserve policymakers' judgment on interest rates, saying the two-year Treasury yields are a signal that their benchmark rate is too high.
"The committee seems to be a little off here in their judgment," Bessent told Fox Business.
"We are at very high real rates here," Bessent also said on CNBC, referring to rates adjusted for inflation. "But again, it's their decision, and I just think if they don't cut, then perhaps the cut in September will be bigger."
Some Republicans have pushed back on Bessent taking on the Fed chair role, including Sen. John Kennedy, R-La., who serves on the Banking Committee with jurisdiction over Fed nominees.
"When you're chair of the Federal Reserve, you're independent. You can't have one foot in the independence camp and another foot in the political camp," Kennedy told Semafor.
Solange Reyner ✉
Solange Reyner is a writer and editor for Newsmax. She has more than 15 years in the journalism industry reporting and covering news, sports and politics.
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