U.S. Treasury Secretary Scott Bessent said that the Federal Reserve has lost the trust of the public for allowing inflation to get out of control, stressing that the institution’s independence depends on that trust.
Speaking in his remarks, Bessent stated that the independence of the Fed (the U.S. central bank) is based on the confidence of the American people, but that the institution has lost this confidence by allowing inflation to spiral out of control and “erode incomes.”
Will Trump intervene?
In response to a question about whether U.S. President Donald Trump could intervene in the Fed’s decision-making process, Bessent said that the president, like anyone else, has the right to express his views on the Fed’s monetary policy decisions.
Asked whether the president has the constitutional authority to dismiss the Fed chair or a member of the Board of Governors due to a policy disagreement, Bessent replied, “I am not a lawyer, and I have no opinion on that.”
‘Tariffs do not cause inflation’
Arguing that tariffs do not fuel inflation, Bessent said that the U.S. economy is showing strong growth, inflation is easing, and tariff-driven inflation has remained ineffective—likening it to a “dog that didn’t bark.”
Bessent also emphasized that their goal is to make the financial system safer, more resilient, and more rational through deregulation. He underlined that this does not mean unconditional liberalization, but rather a regulatory approach that delivers tangible benefits to small businesses, consumers, and those seeking to become homeowners.