US Treasury Secretary: "No view on whether Trump has authority to remove the Fed chair"

US Treasury Secretary Scott Bessent declined to take a position on whether President Donald Trump has the authority to remove the chair of the Federal Reserve (Fed).

On the 4th (local time), according to the breaking-economy news account Walter Bloomberg, Bessent said he had "no view whatsoever" on whether Trump has the power to dismiss the Fed chair or a Fed governor on the grounds of policy disagreements.

He added regarding the Fed’s status that he "regards the Fed as an independent institution." The remarks are seen as underscoring the Fed’s political independence in its monetary policy decision-making process.

In recent markets, debate over the Fed’s independence has been reignited amid Trump’s calls for rate cuts and speculation over the selection of the next Fed chair. As a result, interest is also rising in the relationship between the administration and the Fed.

The authority to remove the Fed chair and governors has been recognized only in limited circumstances depending on legal interpretation and precedent, and controversy has persisted over whether removal is possible based solely on differences in policy views.