"United States Treasury Secretary Scott Bessent has said he would push a new requirement that the Federal Reserve's regional bank presidents live in their districts for at least three years before taking office, a move that could give the White House more power over the independent agency. In comments at the New York Times's DealBook Summit on Wednesday, Bessent said that there is a disconnect with the framing of the Federal Reserve"
"Bessent has stepped up his criticism of the Fed's 12 regional bank presidents in recent weeks after several of them made clear in a series of speeches that they opposed cutting the Fed's key rate at its next meeting in December. US President Donald Trump has sharply criticised the Fed for not lowering its short-term interest rate more quickly. When the Fed reduces its rate, it can over time lower borrowing costs for mortgages, auto loans, and credit cards."
Treasury Secretary Scott Bessent will push a requirement that Federal Reserve regional bank presidents must have lived in their districts for at least three years before taking office. The administration plans to veto nominees who do not meet that residency requirement, increasing White House influence over the Fed's regional leadership. The move follows criticism of several regional presidents who opposed cutting the Fed's key rate at its December meeting and aligns with President Trump’s calls for faster short-term rate reductions. The Federal Reserve sets a short-term interest rate to influence borrowing costs and aims to control inflation and support employment. The Fed’s structure includes a seven-member board and 12 regional banks established by the Federal Reserve Act to ensure geographic input on policy.
Read at www.aljazeera.com
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