Bessent Calls for Fed Independence Amidst Trump's Criticisms

U.S. Treasury Secretary Scott Bessent expressed support for the Federal Reserve's independence while acknowledging President Donald Trump's criticisms. In a candid conversation with Reuters, Bessent defended Trump's authority to dismiss Fed Governor Lisa Cook over alleged mortgage fraud.

Bessent highlighted a series of perceived missteps by the Fed, noting that while it remains an independent entity, accountability is crucial. Trump's ongoing dissatisfaction with the Fed has been evident in his frequent criticism of the institution and its chair, Jerome Powell.

Specific grievances include the Fed's hesitance to lower interest rates and the expensive renovation of its Washington headquarters. Bessent's comments underscore a delicate balance between independent monetary policy and executive feedback.

(With inputs from agencies.)