In the middle of the escalating tension between the White House and the chairman of the federal reserve Jerome Powell, and Finance Minister Scott Bessnt expressed her support to the central banker.
“There’s nothing he doesn’t tell me he should resign now. He was a good civil servant,” Bessnt said during an interview with Fox Business on Tuesday, July 22). “His term ends in May. If he wants to see it, I think he should.”
But Bessnt added that if Powell decides to resign early, “I think he should, but I think there is a real chance for him for his legacy-that is the true size of the Fed monetary policy.”
Powell faces Trump’s anger above rates, renovation
President Donald Trump has repeatedly criticized Powell for maintaining high interest rates and blaming him for slowing the economy.
“It’s dull,” Trump said recently. “It keeps rates too high and probably does it for political reasons.”
Trump said earlier, “I don’t rule out anything but I think it’s very unlikely – if they don’t have to go for a scam.” – Reference to the continuing controversy over the reconstruction of the Fed of $ 2.5 billion.
Accusations of excessive expenditure on inspection calls
The reconstruction caused criticism from the Allies of Trump, including the Chief of Funance Housing Bill Pulte, who claimed that Powell’s testimony of the project was “misleading” without offering details.
Bessent called on the internal review of non -monetary activities of the Fed. “They just print the money to spend it,” he said. “And I think a thorough review should be made.”
From the 2008 financial crisis, Bessnt said that the Fed had been involved in what he called “currency policy of profit”, causing a balloon that caused their expenditure to the difference from the Ministry of Finance, which last year recorded by 17% by 17%.
Fed reacts to fears of supervision
In response to the growing control, Powell wrote Trump’s boss Russ Vought and said: “We are seriously responsible for being good public resources, because we fulfill our duties provided by the congress on behalf of the US people.”
The future of Powella still unclear
Powell’s term of office as the chairman will expire in May 2026, but his long -term period as the Governor of the Fed takes place until January 2028.
(Tagstotranslate) Jerome Powell Federal Reserve (T) President Donald Trump (T)
