Amidst the Fed's interest rate cut controversy, Trump's nomination of Milan sparked heated debate, while Bessant emphasized the urgency of central bank reform.
2025-08-13 09:11:08
In recent years, the Federal Reserve's monetary policy and internal operations have frequently attracted scrutiny. On Tuesday (August 12), U.S. Treasury Secretary Benson made a series of eye-catching remarks in a media interview regarding the Fed's September meeting, the prospect of interest rate cuts, and the nomination of new governors. Meanwhile, Trump's nominee for the Fed Board, Milan, emphasized the importance of central bank independence, while the White House has intensified pressure on Fed Chairman Powell, even threatening a lawsuit over the Fed headquarters renovation project. These developments not only impact the direction of U.S. economic policy but are also likely to have profound implications for global financial markets.
Bessant Pushes for a 50 Basis Point Rate Cut: Focus on U.S. Treasury Secretary Bessant, speaking on Fox Business Network's "Kudlow," explicitly stated that the Federal Reserve should consider a 50 basis point rate cut at its September meeting to address recent volatility in economic data. He noted that last week's significantly downward revision to employment data showed signs of labor market weakness, while Tuesday's inflation data provided favorable conditions for a rate cut. Bessant believes the Fed's failure to cut rates in June and July resulted in a policy lag, which now needs to be offset by a larger rate cut.
Bessant further mentioned that data quality issues could affect the Fed's decision-making. He emphasized that the Fed needs to be more responsive to economic changes to avoid a further slowdown. His remarks sparked heated market discussion about the extent of the September rate cut, and the proposed 50 basis point rate cut undoubtedly added further interest to the upcoming Fed meeting.
Milan's nomination draws attention: Trump's "carefully considered" choice <br/> Last week, US President Trump announced his nomination of Milan, currently chair of the White House Council of Economic Advisers, to fill the vacant seat on the Federal Reserve Board left open by the outgoing Kugler. Milan's nomination is subject to Senate confirmation, and his temporary term will last until January 31, 2026. Bessant expressed optimism that the Senate will confirm Milan before the September Fed meeting, ensuring his participation in crucial monetary policy discussions.
Bessant spoke highly of Millan, calling him "thoughtful and methodical" and crediting him with profound insights into the Fed's operations. He also revealed that Trump is open to Millan getting a full term and is considering other candidates, including former Fed Chair Janet Yellen. This openness demonstrates Trump's flexibility in Fed personnel arrangements, but it also sparked speculation about the future composition of the central bank's leadership.
Fed Independence Controversy: Milan's Cautious Remarks <br/>As Trump's nominee, Milan was asked about the independence of the Federal Reserve in an interview with CNBC. He explicitly stated that Fed independence is "critically important" but declined to elaborate, citing the Senate's approval process as a reason for inconvenience. Milan's cautious stance reflects his desire to avoid controversy during this sensitive period. However, his previous proposal last year to strengthen presidential control over the Federal Reserve Board has sparked curiosity about his potential influence within the Fed.
Federal Reserve independence has always been a central topic in U.S. economic policy discussions. Milan's statement addressed concerns about his stance while carefully choosing his words to avoid direct conflict. This balancing act may help him navigate Senate confirmation but also raises questions about his future role at the Fed.
Trump Pressures Powell: Headquarters Renovation Controversy Escalates <br/>Meanwhile, Trump has intensified pressure on Federal Reserve Chairman Powell. White House spokesman Levitt revealed that Trump is considering filing a lawsuit against Powell for mismanaging the renovation of the Federal Reserve's Washington headquarters. Trump previously hinted at such action on social media and personally inspected the renovation site, criticizing the project's excessive costs, poor oversight, and even accusing it of potential fraud.
White House officials have stated that the renovation of two historic buildings at the Federal Reserve headquarters is excessively lavish and inappropriate for the current economic climate. During his meeting with Powell, Trump not only demanded an interest rate cut but also expressed strong dissatisfaction with the management of the renovation project. A Fed spokesperson declined to comment, but the incident has undoubtedly heightened tensions between the White House and the Fed.
Bessant points directly to "fundamental" problems with the Federal Reserve <br/>In the interview, Bessant also sharply criticized the operation of the Federal Reserve, saying it has "fundamental" problems. He pointed out that the Federal Reserve is bloated and inefficient, which not only affects the quality of its decision-making but also may threaten its independence. A former hedge fund manager, Bessant said that he is discussing monetary policy, regulatory policy, and internal reforms of the Federal Reserve with potential candidates for the chairman. In May 2026, Chairman Powell's term will end, and Trump will need to nominate a new chairman. This decision will have a profound impact on the future direction of the Federal Reserve.
Bessant emphasized that Trump will maintain an open mind and seek broad opinions when selecting a new chairman to ensure he chooses someone who is most beneficial to the American economy and people. He also said that Fed reforms are not just about technical adjustments, but also about how to better serve the core goals of the American economy.
Summary: The Federal Reserve faces multiple challenges . From Bessant's call for a rate cut, to Milan's controversial nomination, to Trump's legal threats against Powell, the Federal Reserve stands at a critical juncture of uncertainty. Bessant's proposal for a 50 basis point rate cut has heightened uncertainty surrounding the September meeting, while Milan's nomination and his assertion of independence have heightened concerns about the Fed's future policy direction. Meanwhile, Trump's continued interference in the Fed's internal operations and personnel arrangements has put the institution's independence and prospects for reform under scrutiny.
In the coming months, the Federal Reserve's decisions will not only influence the pace of the US economic recovery but also have potentially profound repercussions on global financial markets. Whether it's the extent of interest rate cuts, the nomination of board members, or the controversy surrounding its headquarters renovation, every detail is likely to become a focus of market attention. Against this backdrop, how the Fed balances policy adjustments with maintaining its independence will be a key focus for global economic observers.
Bessant Pushes for a 50 Basis Point Rate Cut: Focus on U.S. Treasury Secretary Bessant, speaking on Fox Business Network's "Kudlow," explicitly stated that the Federal Reserve should consider a 50 basis point rate cut at its September meeting to address recent volatility in economic data. He noted that last week's significantly downward revision to employment data showed signs of labor market weakness, while Tuesday's inflation data provided favorable conditions for a rate cut. Bessant believes the Fed's failure to cut rates in June and July resulted in a policy lag, which now needs to be offset by a larger rate cut.
Bessant further mentioned that data quality issues could affect the Fed's decision-making. He emphasized that the Fed needs to be more responsive to economic changes to avoid a further slowdown. His remarks sparked heated market discussion about the extent of the September rate cut, and the proposed 50 basis point rate cut undoubtedly added further interest to the upcoming Fed meeting.
Milan's nomination draws attention: Trump's "carefully considered" choice <br/> Last week, US President Trump announced his nomination of Milan, currently chair of the White House Council of Economic Advisers, to fill the vacant seat on the Federal Reserve Board left open by the outgoing Kugler. Milan's nomination is subject to Senate confirmation, and his temporary term will last until January 31, 2026. Bessant expressed optimism that the Senate will confirm Milan before the September Fed meeting, ensuring his participation in crucial monetary policy discussions.
Bessant spoke highly of Millan, calling him "thoughtful and methodical" and crediting him with profound insights into the Fed's operations. He also revealed that Trump is open to Millan getting a full term and is considering other candidates, including former Fed Chair Janet Yellen. This openness demonstrates Trump's flexibility in Fed personnel arrangements, but it also sparked speculation about the future composition of the central bank's leadership.
Fed Independence Controversy: Milan's Cautious Remarks <br/>As Trump's nominee, Milan was asked about the independence of the Federal Reserve in an interview with CNBC. He explicitly stated that Fed independence is "critically important" but declined to elaborate, citing the Senate's approval process as a reason for inconvenience. Milan's cautious stance reflects his desire to avoid controversy during this sensitive period. However, his previous proposal last year to strengthen presidential control over the Federal Reserve Board has sparked curiosity about his potential influence within the Fed.
Federal Reserve independence has always been a central topic in U.S. economic policy discussions. Milan's statement addressed concerns about his stance while carefully choosing his words to avoid direct conflict. This balancing act may help him navigate Senate confirmation but also raises questions about his future role at the Fed.
Trump Pressures Powell: Headquarters Renovation Controversy Escalates <br/>Meanwhile, Trump has intensified pressure on Federal Reserve Chairman Powell. White House spokesman Levitt revealed that Trump is considering filing a lawsuit against Powell for mismanaging the renovation of the Federal Reserve's Washington headquarters. Trump previously hinted at such action on social media and personally inspected the renovation site, criticizing the project's excessive costs, poor oversight, and even accusing it of potential fraud.
White House officials have stated that the renovation of two historic buildings at the Federal Reserve headquarters is excessively lavish and inappropriate for the current economic climate. During his meeting with Powell, Trump not only demanded an interest rate cut but also expressed strong dissatisfaction with the management of the renovation project. A Fed spokesperson declined to comment, but the incident has undoubtedly heightened tensions between the White House and the Fed.
Bessant points directly to "fundamental" problems with the Federal Reserve <br/>In the interview, Bessant also sharply criticized the operation of the Federal Reserve, saying it has "fundamental" problems. He pointed out that the Federal Reserve is bloated and inefficient, which not only affects the quality of its decision-making but also may threaten its independence. A former hedge fund manager, Bessant said that he is discussing monetary policy, regulatory policy, and internal reforms of the Federal Reserve with potential candidates for the chairman. In May 2026, Chairman Powell's term will end, and Trump will need to nominate a new chairman. This decision will have a profound impact on the future direction of the Federal Reserve.
Bessant emphasized that Trump will maintain an open mind and seek broad opinions when selecting a new chairman to ensure he chooses someone who is most beneficial to the American economy and people. He also said that Fed reforms are not just about technical adjustments, but also about how to better serve the core goals of the American economy.
Summary: The Federal Reserve faces multiple challenges . From Bessant's call for a rate cut, to Milan's controversial nomination, to Trump's legal threats against Powell, the Federal Reserve stands at a critical juncture of uncertainty. Bessant's proposal for a 50 basis point rate cut has heightened uncertainty surrounding the September meeting, while Milan's nomination and his assertion of independence have heightened concerns about the Fed's future policy direction. Meanwhile, Trump's continued interference in the Fed's internal operations and personnel arrangements has put the institution's independence and prospects for reform under scrutiny.
In the coming months, the Federal Reserve's decisions will not only influence the pace of the US economic recovery but also have potentially profound repercussions on global financial markets. Whether it's the extent of interest rate cuts, the nomination of board members, or the controversy surrounding its headquarters renovation, every detail is likely to become a focus of market attention. Against this backdrop, how the Fed balances policy adjustments with maintaining its independence will be a key focus for global economic observers.
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