Today, Treasury Secretary Scott Bessent mentioned in an interview that he thinks the Federal Reserve system should be examined for possibly hindering the US economy, which he believes is “on the cusp” of a growth surge comparable to the boom of the 1990s.
“In the ’90s we finally had the productivity growth kick in from the IT revolution. And I would say that we are on the cusp of that right now,” Bessent stated.
“What we need to do is examine the entire Federal Reserve institution and whether they have been successful.”
“Has the organization succeeded in its mission? If this were the [Federal Aviation Administration] and we were having this many mistakes, we would go back and look at why has this happened.”
Noting the recent and highly publicized tensions between President Trump and Federal Reserve Chair Jerome Powell, Bessent said the Trump administration has started the formal process of choosing Powell’s successor. “I’m not going to deal in hypotheticals… you know, Chair Powell’s term ends in May. There’s also another seat coming up in January. So we’ll see.”
He continued, “President Trump solicits a whole range of opinions and then makes a decision… So he takes a lot of inputs, and at the end of the day it’s his decision.”
Regarding interest rates, Bessent supported the idea that the Fed probably should ease policy as inflation mainly moderates. “They were fear mongering over tariffs, and thus far we have seen very little if any inflation. We’ve had great inflation numbers. So, you know, I think this idea [is] of them not being able to break out of a certain mindset. All these PhDs over there, I don’t know what they do.”
Bessent confirmed that he will give a keynote speech at the U.S. Central Bank Monday evening to open a regulatory conference.
By CEO NA Editorial Staff
