Summary
United States Treasury Secretary Scott Bessent wants regional Federal Reserve bank presidents to live in their districts for at least three years before they take office. This could increase the White House's influence over the Federal Reserve, a traditionally independent institution. The Federal Reserve sets interest rates to control inflation and support employment in the U.S.
Key Facts
- Scott Bessent is the U.S. Treasury Secretary.
- Bessent plans to push a rule requiring regional Fed bank presidents to live in their districts for at least three years before starting their roles.
- Currently, the Federal Reserve's regional bank presidents do not have residency requirements.
- President Donald Trump has criticized the Fed for not reducing interest rates quickly enough.
- The Federal Reserve aims to keep prices stable and boost job growth by setting a key interest rate.
- The Fed is made up of a board of governors in Washington and 12 regional banks across the U.S.
- Some current regional Fed presidents were hired from outside their districts, which Bessent argues goes against the Fed's original purpose.
