Treasury Secretary
“I actually think that’s a mistake, because if you’re trying not to politicize the Fed, for the Fed chair to be sitting there trying to put his thumb on the scale is a real mistake,” Bessent said Tuesday in an interview with CNBC on the sidelines of the World Economic Forum in Davos, Switzerland.
Bessent’s comments come ahead of a Supreme Court hearing scheduled for Wednesday over President
Earlier:
Powell’s appearance has taken on new significance on the heels of grand jury subpoenas from the Justice Department threatening a criminal indictment over renovations to the central bank’s Washington headquarters and testimony from Powell to Congress about the work. Powell has accused the president of a power grab and said that at stake was whether interest rates would be based on “political pressure or intimidation” instead of economic conditions.
While the subpoenas mark a dramatic escalation of the administration’s attacks on the central bank, it was just one in a series of actions and comments from the president targeting the Fed, including his bid to dismiss Cook. Trump ordered her dismissal in late August, citing unproven allegations of mortgage fraud that Cook has denied.
She challenged the attempted ouster in court, and the Supreme Court declined to let Trump proceed while her lawsuit moves through the legal system.
Asked about the Cook case during a Dec. 10 press conference, Powell at the time chose not to respond.
“We’re not legal commentators. It’s before the courts,” he said.
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Meghashyam Mali, Magan Crane
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