Bessent Reminds Powell: Maintain Fed Independence
US Treasury Secretary Scott Bessent criticized Federal Reserve Chairman Jerome Powell, who reportedly planned to appear at a Supreme Court hearing. According to Bessent, the move could be seen as "playing politics," even though the Fed has consistently emphasized its independence.
Bessent's statement came ahead of Wednesday's hearing, which will address President Donald Trump's efforts to dismiss Fed Chair Lisa Cook. Powell is expected to attend, according to sources familiar with the situation.
The spotlight on Powell has intensified due to additional government pressure. The Justice Department issued a subpoena related to the renovation of the central bank's Washington headquarters, including highlighting Powell's testimony to Congress about the project. Powell believes that what is at stake is whether interest rate policy will be determined by economic data or by "political pressure and intimidation."
Lisa Cook's case stems from Trump's dismissal order in late August, citing disputed mortgage fraud allegations that Cook has denied. Cook sued, and the Supreme Court previously refused to allow Trump to proceed with the dismissal while the legal proceedings are ongoing. When asked on December 10, Powell kept it short: it's not the Fed's business to comment on ongoing legal matters. (alg)
Source: Newsmaker.id
