“The Fed should be independent. The Fed is independent, but I also believe they have made many mistakes,” said Besent.
Independent central banks are widely considered crucial for a stable global financial system.
Besent said that the composition of the Board of the Fed, with governors of regional banks, meant that the president could not “manipulate the Board.”
He also rejected the idea that the markets were disturbed by the actions of the Trump government. “The S&P is in a new maximum and the yields of the bonds are fine. So we have not seen anything yet,” he said.
Bank of Mexico advocates autonomy
In Mexico, the members of the Bank of Mexico Board Board (Banxico) have stressed that autonomy is an important nillar for any central bank.
“The autonomy of the central banks is a key pillar in the conduct of monetary policy,” said Galia Borja subgovernor, during the quarterly report of the bank.
The governor, Victoria Rodríguez stressed that there is an international consensus on the importance of having central banks focused on ensuring their objectives.
While the new subgovernor, Gabriel Cuadra, said the Federal Reserve is an institution with a great tradition. “I trust that the internal processes and the legal framework of that country will allow any situation that arises satisfactorily,” he said.
Last week, Trump dismissed Cook, the first black woman to be part of the Board of Governors of the Federal Reserve, after Williamuffa, director of the Federal Housing Financing Agency, appointed by Trump, accused her of mortgage fraud.
Antart asked the Department of Justice to investigate the accusation. The department has not filed charges against him.
Cook and their supporters argue that fraud accusations are a pretext to dismiss it and that the president could appoint an ally in the Central Bank to promote their policies. Cook has sued Trump and the Fed, claiming that Trump did not have the legal authority to dismiss it.
With Reuters information
