WASHINGTON: US Treasury Secretary Scott Bessent said on Tuesday (Jul 22) that he did not see a reason for Federal Reserve Chair Jerome Powell to resign immediately, a day after calling for a review of the Fed.
Bessent’s comments in a Fox Business interview come as Powell faces growing pressure from Donald Trump’s administration to slash interest rates, with the president recently targeting the central bank chief over the Fed’s US$2.5 billion renovation project as well.
“There’s nothing that tells me that he should step down right now,” Bessent said, referring to Powell.
But he noted that Powell’s term as Fed chair ends in May 2026, and that Powell should see out his full term if he wants to.
But if the Fed chief wanted to leave early, he should as well, Bessent added.
Late on Monday, Bessent called for the Fed to conduct an “exhaustive internal review of its non-monetary policy operations”, accusing the central bank of “significant mission creep” in a social media post.
The US central bank has held interest rates steady this year as it monitors the effects of Trump’s sweeping tariffs since returning to the White House – drawing ire from the president.
Fed officials expect to have a better understanding of how the levies impact the US economy in the summer months, and are approaching further rate cuts cautiously.
The Fed holds its next policy meeting at the end of this month.
