Scott Bessent’s Sharp Critique of Media and Fed Policies
Scott Bessent, the U.S. Treasury Secretary, didn’t hold back during remarks at the DealBook Summit. He aimed at the New York Times, accusing the publication of spreading misinformation about former President Donald Trump’s health. Bessent claimed the paper fails to apply the same scrutiny to the Biden administration. “I don’t read the New York Times anymore,” he stated, emphasizing his disenchantment with the paper’s reporting.
Specifically addressing a report questioning Trump’s mental acuity, Bessent dismissed it as “100% fake.” His criticism drew attention when he referenced the Times’ assertion regarding the former president’s late-night phone calls. “He only called me twice at 3 a.m. instead of three times?” he quipped, highlighting what he perceives as a glaring inconsistency in media treatment.
Bessent’s interaction with the media underscores existing tensions between the Trump administration and mainstream outlets. Yet, his criticisms extended beyond journalism to internal Federal Reserve policies. He announced a significant requirement: all nominees for regional Federal Reserve Bank presidencies must have resided in their districts for at least three years. “Unless someone has lived in their district for three years, we’re going to veto them,” he said, signaling a potentially transformative approach to central bank governance.
This move represents a shift in how presidential influence might play out in the Fed’s traditionally independent atmosphere. Historically, regional Fed presidents are chosen by their boards, allowing local economic conditions to shape monetary policy. With this proposed change, Bessent aims to introduce a tighter connection between the nation’s economic policies and the specific needs of communities.
Bessent voiced concerns about a disconnect within the Federal Reserve. “There is a disconnect with the framing of the Federal Reserve,” he noted. His observations suggest that those who may not fully understand local economic issues have been influencing broader monetary policy from afar.
Additionally, Bessent highlighted what he described as a “New York hold” on Federal Reserve decision-making. This term refers to the longstanding dominance of the New York Fed president within the Federal Open Market Committee. By advocating for more localized leadership, he raises important questions about representation and relevance in economic policymaking.
His proposed residency rule could diminish the trend of appointing individuals with limited ties to the districts they oversee. According to Bessent, more than half of recent regional presidents lacked experience in the areas they were appointed to serve. This lack of local insight, he argues, contributes to slow responses when economic distress arises outside major financial centers.
As Bessent pressed forward, he conveyed a sense of urgency. Given rising mortgage rates and climbing credit card debts, he stressed the need for swifter action from the Fed. The administration seeks timely monetary policy adjustments rather than delays that could exacerbate financial burdens on American families.
Bessent’s comments regarding media coverage of health issues highlight a perception of bias. He repeatedly contrasted the treatment of Trump and Biden, claiming a media double standard in addressing their respective capacities. Bessent stated, “I get calls from him at 3 a.m. on economic updates—who else does that?” This assertion seemed intended to shift public perception of Trump’s activity level against what he deems unfounded scrutiny of Biden.
As for the implications of Bessent’s reforms, they could lead to faster interest rate cuts. Lower rates might provide crucial relief to consumers facing elevated costs. Nonetheless, some economists warn that such moves could rekindle inflation or unsettle existing markets. Bessent, unperturbed, pointed to the pressing economic reality, emphasizing the urgency of addressing a cost-of-living crisis. “Bring in Fed leaders who know their local economies—and keep the Beltway elites from driving policy in a vacuum,” he urged.
The question remains: will the proposed residency rule gain traction? As it stands, the Senate Banking Committee has yet to schedule discussions on these governance changes. Any shift would require not just the administration’s momentum but also solid support in Congress.
In summary, Bessent’s appearance at the summit revealed fundamental frustrations with both the media and current Federal Reserve practices. His remarks encapsulated the ongoing narrative of the Trump administration as it endeavors to realign power from centralized institutions to localized governance that better reflects American economic realities. “This isn’t about economics. It’s about who gets to decide what kind of country we live in,” Bessent concluded, highlighting the far-reaching implications of this discourse.
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