Sen. Elizabeth Warren (D-Mass.) urged billionaire investor Scott Bessent, President-elect Trump's nominee for Treasury secretary, not to interfere with the Federal Reserve.
“While I have been a vocal critic of Fed Chairman Jerome Powell's extreme rate hikes and lack of transparency, I have never questioned that it is his job to make those decisions,” Warren said. said in a statement on Monday.. “It would be a grave mistake for the Trump administration to interfere with the Fed's independence, as Mr. Bessent suggested.”
Mr. Bessent was nominated by President Trump on Friday to be his Treasury secretary. If confirmed by the Senate, he would be the top leader of the president-elect's economic team, tasked with enforcing the global trade-shaking tariffs Trump promised during his campaign. However, it is notable that tariffs were not mentioned in his nomination announcement.
Bessent is the founder and CEO of the hedge fund Key Square Group and served as an economic advisor to the Trump campaign.
Powell was appointed to the Federal Reserve Board by President Trump in 2017. President Biden reelected him in 2021 despite opposition from progressives like Warren, who say the state has kept interest rates too high for too long. Powell's term ends in 2026, but he has said he has no intention of resigning before then, even if President Trump asks him to.
The Federal Reserve is a politically independent institution that fiercely protects its reputation, but President Trump said earlier this year that he has at least no say in monetary policy, including interest rates, because he “makes a lot of money.” suggested that they should have it.
Warren, who serves on the Senate Finance Committee, has criticized both Powell and Bessent. He said in a statement that Mr. Bessent's nomination may give Wall Street a “sigh of relief,” but working people will “get no help.”
“The Secretary of the Treasury must protect our financial system, ensure fairness in our tax system, and expand economic opportunity for the middle class, especially through affordable housing,” Warren said.
As lawmakers prepare to work with President Trump's nominees in January, Warren said she is willing to work across the aisle on behalf of the American people.
“I don't know if Mr. Bessent will shift his loyalty from Wall Street investors to American workers, but he is willing to work with anyone to advance the interests of working families,” Warren said. Ta. “I look forward to reviewing the Treasury Secretary nominee's record and meeting with him prior to his confirmation hearing.”
