Treasury Secretary Scott Bessent announced on Wednesday a proposed new requirement that Federal Reserve regional bank presidents must reside in their districts for a minimum of three years before assuming office. Bessent indicated this move could increase the White House’s influence over the traditionally independent agency.
Speaking at the New York Times’ DealBook Summit, Bessent expressed concerns about a perceived disconnect within the Federal Reserve. He stated that the administration intends to “veto” any candidate who has not lived in their respective district for at least three years.
Bessent’s criticism of the Fed’s 12 regional bank presidents has intensified recently, particularly after several voiced opposition to lowering the Fed’s key rate at the upcoming December meeting. President Donald Trump has been a vocal critic of the Fed for its perceived slow pace in reducing short-term interest rates, which can influence borrowing costs for mortgages, auto loans, and credit cards.
The proposal to “veto” regional bank presidents would mark a significant effort by the Trump administration to exert greater control over the Federal Reserve, an institution historically designed to operate independently from daily political pressures.
