The United States Treasury Secretary, Scott Besenthe claimed an “independent and departure review” of the Federal Reserve, Fedby criticizing the expansion of your mission and considering that your independence is in danger.
“The credibility and political legitimacy are fundamental for independence. Both have been committed to the expansion of the FED beyond their mandate, “Besent wrote in an opinion article published in the ‘Wall Street Journal‘.
(You may be interested: President of the European Central Bank sees risks of a political control of the Fed).
He demanded that the Fed “restore its credibility” as an institution focused solely on its legal mandate of maximum employment, stable prices and moderate long -term interest rates.
The comments of Besent They occur at a time when the administration of President Donald Trump Increase pressure on the central bank, seeking to influence the institution to lower interest rates.
Trump also recently intervened to dismiss a governor of the Fed, which, according to critics, constitutes an attempt to exercise a greater control About the institution.
(Read: President Trump promotes crypto integration with global markets).
Fed President Jerome Powell
AFP
Among other issues, Besent criticized the role on Friday regulator of the Fed on the banks. He said instead that he should focus on “macroeconomic supervision, liquidity as a lender of the last instance and monetary policy.”
He added that other regulators, such as Federal Corporation With deposit insurance and the office of the currency, they should be empowered in turn to lead the banking supervision. “Non -conventional policies, such as quantitative flexibility, should be used only in true situations emergencyin coordination with the rest of the federal government, “he wrote.
Fed Office in Washington DC.
AFP
With two position and one chair in the Fed?
The economist Stephen lookthe new member of the Board of Governors of the
Fed, elected by the president of the United States, Donald Trumpafter Adriana Kugler’s abrupt resignation, he said he will keep his position as an advisor to the White House.
They look, nominated by the president a few weeks ago, will temporarily assume until January 31 of next year. During a Senate audience, the economist pointed out that he will combine both positions because it is a vacancy for a few months.
Some legislators present in the commission questioned Mira’s ability to work in both places and warned that there could be conflict of interests for the benefit of the Administration.
If your two positions were confirmed, it would be the first In doing so. “My opinions and decisions will be based on my analysis of macroeconomy and what is better for long -term management,” he argued during his initial speech. The comments of the senators are based on the war Trump’s open against the president of the Federal Reserve, Jerome Powell.
The president dedicates almost daily messages to Powell on his platform, Truth Social, in which he has come to ensure that the president of the entity is “too slow, stupid and political” to hold the position.
All this confrontation lies from the non -compliance of the president for Powell to lower interest rates. Trump’s last movement against the institution took the dismissal of Governor Lisa Cook, justifying him with an investigation into a possible mortgage fraud that launched her own administration.
The US president, Donald Trump, and the president of the Federal Reserve, Jerome Powell.
AFP
AFP
