American Minister of Finance Scott Betting escalated his criticism of the Federal Reserve on Friday, and insisted on major reforms and accused the central bank of stimulating inflation and inequality while president Donald Trump weighs successors to give chairman Jerome Powell.
Bessent calls for the revision of Fed’s Powers
In an OP-ED for the Wall Street Journal that was published On Friday, Bessent called for a “non -party -related assessment” of the FED, including its authority to set interest rates, regulatory functions and internal activities.
He argued that the Fed Bank Supervision should leave to other agencies and leave bond purchases outside of emergency conditions.
“The Fed must change course,” Bessent wrote, adding that the policy “enriched the rich at the expense of the poor” and contributed to the affordability crisis of American housing.
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Donald Trump drives Powell -replacements
In the meantime, Trump has told reporters that his treasury chef was on a shortlist of four candidates to replace Powell when his term ends in May 2026. Bessent soon said he was not interested, Reuters reported.
Trump has also called the national director of the Economic Council Kevin HassettFormer Fed Governor Kevin Warssh and current Fed Governor Christopher Waller as potential nominees.
It was previously reported that Bessent took the trouble to find a new Federal Reserve chairman after the constant urge of Trump for the Central Bank to lower interest rates.
Bessent started interviewing candidates to succeed Powell on Friday, noted the publication, with reference to a source that is familiar with the case.
Trump has long been critical of Powell, which he appointed in 2018 and put pressure on the Fed to reduce the rates more aggressively. The president has also moved to the Governor of Ousted Fed Lisa Cook About alleged mortgage fraud, which she denies.
Beige book signals slower cuts
The newest beige book of the Fed, published on 3 September, painted a picture of flat economic activity throughout the country. While he acknowledges that household struggles with wages and prices recognize, the report dampens the expectations of an aggressive reduction of 50-base point speed in September.
Craig ShapiroMacro strategist at the Bear Traps report, noted on Xearlier TwitterThat the cautious tone suggests a “slower cutting cycle”, in contrast to the calls of Trump because deeper and faster cuts.
Federal Reserve is preparing at the October conference
The US Federal Reserve will organize a payment conference in innovation on 21 October, aimed at merging traditional and decentralized finances.
The event will also cover Stablecoins, AI in payments and tokenized financial products.
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