Treasury Secretary Scott Besent on Monday suggested a review of the Federal Reserve which will go beyond the current dispute over the construction of renewal and look at its overall work.
“What we need to do, check the entire Federal Reserve Institution and whether they have been successful,” during an interview by CNBC, Besent said, “said,”Squalk box“Has the organization succeeded in its mission? If this (Federal Aviation Administration) would have been and we were making many mistakes, we would go back and see why it happened. ,
Comments come A rapid conflict Between the White House and the Central Bank.
Conversion reports on the President last week Donald Trump Fed was preparing to firing the chair Zerome polyWhite House report indicated One step was the nextBut Trump soon denied that he is ready what would be legally suspected maneuver.
Bessent is at the center of dispute, both as A potential successor In search of the Fed -with -the -Treasury chief, in search of discouraging Trump from excluding Powell in a report as a mediator, pointing to the head.
“President Trump impressed a full range of Rai and then a decision,” Besant said when asked when asked A Wall Street Journal Report That he helped Trump celebrate Pavel to hold his hand on Pavel. “So he takes a lot of input, and this is his decision at the end of the day.”
Tusrap Have demanded fed Dramatically reduces its benchmark overnight borrowing rate, something that is not possible regardless of the chair.
In addition, in recent times the administration has criticized for the Fed. Cost overran In renewal of $ 2.5 billion, it has been done for two of its buildings in Washington. Administration officials are allegedly planning to see the project in the individual.
On the question of interest rates, Besent supported the idea that the fed should possibly reduce with inflation.
“They were afraid of tariffs, and thus we have seen very little so far, if any, inflation,” Besent said. “We have a lot of inflation number. So, you know, I think this idea (is) is not able to get out of a certain mindset. All these Ph.Ds there, I don’t know what they do.”
Fed December in December, the final cut rates, which completed a brief spontaneous cycle, reduced the Fed funds to a full percentage point. However, as Fed had reduced both mortgage rates and treasury yields.
The market pricing indicates that the Fed will probably re -cut in September.
