Bessent values ‘market-based indicators’ over Powell’s influence
Scott Bessent, Treasury Secretary, emphasized the importance of “market-based indicators” over Federal Reserve Chairman Jerome Powell’s economic analysis. Bessent claimed that his 35-year career has been built on listening to the market rather than relying on external economic advice.In a recent interview, he defended tariffs imposed by former President Trump, arguing they have not contributed to inflation, despite Powell’s reluctance to lower interest rates in response to market pressures. Bessent noted the strong performance of both the stock and bond markets,suggesting that they reflect a healthy economic surroundings. Meanwhile, Trump has considered replacing Powell with Bessent when powell’s term ends in 2026.
Scott Bessent values ‘market-based indicators’ over Powell influence
Treasury Secretary Scott Bessent downplayed Federal Reserve Chairman Jerome Powell’s economic analysis and claimed Bessent had made his “35-year career listening to the market.”
Powell responded to backlash about the Federal Reserve refusing to lower rates Tuesday by laying the blame on President Donald Trump for issuing tariffs against dozens of countries. Bessent is a staunch defender of these tariffs and helped negotiate some with China.
“They have to admit the tariffs have not stoked inflation,” Fox News anchor Laura Ingraham told Bessent on the Ingraham Angle Tuesday. “Again, is this a political move, or is this truly based in solid and sound economics that we see from the Fed chair?”
“Well, Laura, let’s just look at what the market’s saying. The market had the fastest recovery from a 15% decline in history, after the bottom shortly after liberation day,” Bessent said.
At the time, the Nasdaq rose from about 15,200 points in April to 20,200 on Friday. The S&P 500 rose from about 4,980 points to 6,170 over the same period. While these were records for the markets, the Dow Jones surged from 37,600 points to 43,800, just shy of its 45,000-point record.
“And the bond market, which everyone says should panic over inflation or the tariffs, the 10-year bond had the best return that it’s had in five years. So, bond market’s doing well. Stock market is doing well,” Bessent said. “I will take the market-based indicators over the so-called experts all the time. That’s how I made my 35-year career listening to the market.”
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Trump has floated replacing Powell, 72, whom he nominated in 2018 during his first term, with Bessent.
Powell’s term is up in May 2026.
Former President Barack Obama nominated Powell to serve on the Federal Reserve Board of Governors in 2012.
As Fed chairman, Powell has resisted Trump’s urging to cut interest rates. Powell is waiting for the tariffs to affect prices before making any changes.
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