Trump Allies Escalate Pressure on Federal Reserve Amid Rate-Cut Demands

Allies of former President Donald TRUMP are intensifying their campaign against the Federal Reserve, with U.S. Treasury Secretary Scott Bessent leading the charge. In a CNBC interview, Bessent called for a comprehensive review of the Fed's operations, criticizing its caution on tariffs and questioning the utility of its academic staff. "What we need to do is examine the entire Federal Reserve institution and whether they have been successful," he said. "All these PhDs over there, I don’t know what they do."

The remarks amplify Trump's longstanding criticism of Fed Chair Jerome Powell for what he views as insufficiently aggressive rate cuts. Market volatility has surged in recent weeks amid speculation about Powell's potential ouster—a move that WOULD test legal boundaries and roil financial markets. The Fed's rate-setting committee, composed of twelve members, retains structural independence, but political pressure threatens to erode its traditional autonomy.