"The pressure from Trump may not have been as effective as he'd hoped, with the base rate still at 3.75 to 4%, but the attention on the central bank has remained. On a near-daily basis, markets are reacting to hints dropped by regional Federal Reserve bank presidents, Fed governors, Federal Open Market Committee (FOMC) meeting notes, and data which may colour the decision-making of the group."
"Treasury Secretary Scott Bessent is calling time on the influence these individuals now wield. "I think it's time for the Fed to just move back into the background like it used to do, calm things down and work for the American people, set monetary policy on a good path," Bessent told CNBC. "This isn't sport, it's people's lives.""
Federal Reserve actions in 2025 drew intense scrutiny from the White House, investors, analysts, and media. The Federal Open Market Committee faced sustained political pressure from President Trump to lower the base rate after previously urging against cuts before the election. Trump's July visit to the Fed marked only the fourth presidential visit in the central bank's history. The base rate remained at 3.75 to 4%, while markets reacted daily to signals from regional Fed presidents, governors, FOMC meeting notes, and incoming data. Treasury Secretary Scott Bessent urged the Fed to step back from public signaling and focus on setting sound monetary policy for Americans.
Read at Fortune
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