Fed, Trump and Powell
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Good morning. The US Treasury secretary calls for a review of the Federal Reserve’s renovation of its headquarters. The Bank of England is said to be considering shelving plans for a digital pound. And Victoria Beckham’s fashion company is on the road to profitability.
US Treasury Secretary Scott Bessent weighed in on the latest Fed drama, pointing to the "fear-mongering" around tariffs and the potential for higher inflation.
U.S. Treasury Secretary Scott Bessent on Monday called on the Federal Reserve to conduct an exhaustive review of its non-monetary policy operations to ensure that "mission creep" does not jeopardize the independence of its core monetary policy mission.
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The S&P 500’s record close comes despite the Trump administration’s beef with the Federal Reserve and its use of tariffs as a bargaining tool.
The Fed should be reviewed, citing what the Treasury secretary called “fearmongering over tariffs” despite the emergence of little, if any, inflationary effect.
Bessent also said the Fed should conduct “an exhaustive internal review of its non-monetary policy operations,” adding that “significant mission creep and institutional growth have taken the Fed into areas that potentially jeopardize the independence of its core monetary policy mission.
President Donald Trump on Sunday disputed a Wall Street Journal story alleging that Treasury Secretary Scott Bessent urged him to avoid firing Federal Reserve Chair Jerome Powell partly over concerns about the impact of his potential removal on the U.S. economy, declaring that he knows “better than anybody what’s good for the Market.”