"Of Course" Fed Should Be Independent, But Trump Will "Make His Views Known": Bessent

WASHINGTON — Scott Bessent, President-elect Donald Trump's nominee for Treasury secretary, stated on Thursday that the Federal Reserve (Fed) should maintain its independence in setting monetary policy. However, he also indicated that Trump would "make his views known" on the matter, raising concerns about potential interference with the central bank's autonomy.

In his confirmation hearing before the Senate Finance Committee, Bessent said, "I think on monetary-policy decisions, the FOMC should be independent." He stressed that President-elect Trump will make his views on Fed policy known, but this would not differ from members of Congress making their views on monetary policy clear.

Bessent's remarks come amid growing concerns about Trump's influence over the Fed, given his past statements and actions. During his first term, Trump frequently criticized the Fed for raising interest rates and even considered firing Fed Chair Jerome Powell. These actions raised questions about the Fed's independence and its ability to make decisions based solely on economic considerations.



Bessent's support for the Fed's independence is a positive sign, as it indicates that the Trump administration is aware of the importance of maintaining the central bank's autonomy. However, his statement that Trump will "make his views known" suggests that the administration may still attempt to influence the Fed's decisions, which could potentially undermine the central bank's independence.

The Fed's independence is crucial for maintaining economic stability and growth. By allowing the Fed to make decisions based on economic data and analysis, rather than political considerations, the central bank can effectively manage inflation and support the economy. Any attempts to interfere with the Fed's independence could lead to higher inflation, slower economic growth, and potential financial instability.

As the Trump administration takes office, it will be essential for the Fed to maintain its independence and for the administration to respect the central bank's autonomy. By doing so, the Fed can continue to play its critical role in supporting the U.S. economy and ensuring financial stability.

In conclusion, while Scott Bessent's support for the Fed's independence is a positive sign, the Trump administration's potential influence over the central bank remains a concern. To maintain economic stability and growth, it is crucial for the Fed to remain independent and for the administration to respect the central bank's autonomy.