Independence of Federal Reserve Defended by Treasury Nominee

Scott Bessent, Trump's nominee for U.S. Treasury Secretary, emphasized the need for the Federal Reserve's independence during a Senate Finance Committee hearing. He asserted that the Federal Open Market Committee's decisions should remain free from political influence, counteracting claims of Trump's interference with the Fed's policymaking.


Devdiscourse News Desk | Updated: 16-01-2025 23:03 IST | Created: 16-01-2025 23:03 IST
Independence of Federal Reserve Defended by Treasury Nominee
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Scott Bessent, President Trump's nominee for U.S. Treasury Secretary, made a strong case for the Federal Reserve's independence at a Senate Finance Committee hearing on Thursday. He told the committee that the Federal Open Market Committee (FOMC), the Fed's monetary policy-setting body, should remain free from outside influence.

Addressing concerns about President Trump's stance, Bessent stated, "President Trump is going to make his views known," but emphasized that the notion of Trump directly influencing the Fed's decisions is "highly inaccurate." Bessent underscored the importance of keeping monetary policy discussions independent.

The remarks highlight ongoing tensions between political authorities and the central bank, as the Fed's autonomy in managing interest rates remains a crucial aspect of its function. The finance community continues to watch these developments closely.

(With inputs from agencies.)

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