Bessent says Powell staying on is 'violation' of all Fed norms
Published in Business News
Treasury Secretary Scott Bessent criticized Jerome Powell for his decision to stay on the Federal Reserve Board after he steps down as the U.S. central bank’s chair, saying it amounts to a break with Fed tradition.
“It’s highly unusual for someone who says he’s an institutionalist and cares about norms at the Fed,” Bessent said on Fox Business Wednesday with regard to Powell. “This is a violation of all Federal Reserve norms.”
Bessent was speaking after Powell earlier in the day presided over his final policy meeting as Federal Reserve chair. Powell announced he will stay on as a governor for an indeterminate period of time after Kevin Warsh, President Donald Trump’s nominee as his successor, is confirmed by the Senate and takes office.
Powell said that he was concerned about a series of legal attacks on the Fed and that he would leave once a probe into a Fed building renovation project was “truly over.”
Bessent said the move amounted to an “insult” to Warsh and Governors Michelle Bowman and Christopher Waller, who were also picked by Trump, “to think that these other Republican nominees do not care about the institution of the Fed and that he alone can maintain the integrity of the Fed.”
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