Treasury Secretary Scott Bessent wants to bypass the Fed to lower interest rates

[WhiteTara]

https://finance.yahoo.com/news/treasury-secretary-scott-bessent-wants-213421357.html

Treasury Secretary Scott Bessent has a new plan in the fight to bring down historically high interest rates, and it’s got nothing to do with the Federal Reserve.

Bessent, in two interviews this week, said the Trump administration wants to focus on lowering long-term interest rates, which are largely influenced by the yield on the 10-year US Treasury note. The Fed’s decisions, on the other hand, have a more direct effect on short-term interest rates, which control borrowing costs for Americans.

On his fourth day in office, President Donald Trump said he will “demand that interest rates drop immediately” and that he understands monetary policy “much more” than the central bank and its leader, Chair Jerome Powell. He has also advocated that Powell be fired, though he has walked that back in recent comments.

Still, despite Trump’s barrage of criticism against the Fed, Bessent is assuring Wall Street that the administration isn’t trying to twist the Fed’s arm, but rather carve out its own approach.

there are no separate lanes anymore. They have merged into one giant cluster f*ck.