Scott Bessent disagreed with the Fed’s decision to keep interest rates unchanged this Wednesday (28)
US Treasury Secretary Scott Bessent said this Wednesday (28) that President Donald Trump has made it clear that he intends to replace Jerome Powell as chairman of the Federal Reserve (Fed, the North American central bank) and that the successor should be announced next week.
“I was talking to President Trump on the flight back from Iowa last night about what he’s thinking and my inclination is that we might hear something about Powell’s replacement in the next week or so,” Bessent said in an interview with Yahoo! Finance.
stating that the neutral level – when interest rates are neither contracting nor expanding the economy – for the Fed Funds is lower than the current level.
“Inflation is moving toward the target faster than perhaps some board members or Federal Reserve chairs think,” Bessent said. “We must keep an open mind to the fact that economic growth does not equate to inflation and let’s watch what happens.”
*With information from Estadão Conteúdo
