Bessent on Fed Independence: Interest Rate Decisions Belong to Central Bank

Central Bank Independence Is Key

During a recent public statement, U.S. Treasury Secretary Bessent made it clear that the Federal Reserve’s independence in interest rate decisions is crucial for maintaining market stability. He emphasized that the central bank should make judgments based on economic conditions, not external pressures.

Discussions with Trump

Bessent revealed that he had spoken with former President Trump earlier this week regarding potential candidates for the Fed chair position. He noted that while political figures may voice opinions, the final decisions must remain with the Fed.

• The central bank must maintain policy independence
• Political influence should stay within reasonable bounds
• The Fed's role is to serve the broader economy