Sen. Elizabeth Warren (D-Mass.) urged President-elect Trump’s pick for Treasury secretary, billionaire investor Scott Bessent, to not interfere with the Federal Reserve.
“I have been a fierce critic of Fed Chair Jerome Powell’s extreme interest rate hikes and lack of transparency, but I have never questioned that it is his job to make those decisions,” Warren said Monday in a statement. “It would be a serious error for the Trump administration to interfere with the Fed’s independence, as Mr. Bessent has suggested.”
Bessent was named Friday as Trump’s Treasury secretary. If confirmed by the Senate, he would be the top leader of the president-elect’s economic team, which will be tasked with rolling out the tariffs Trump promised during his campaign that would shake up global trade. The announcement of his nomination notably did not mention tariffs, however.
Bessent is the founder and CEO of hedge fund Key Square Group, and he served as an economic adviser to Trump’s campaign.
Powell was appointed to the Federal Reserve in 2017 by Trump. President Biden reappointed him in 2021, despite objections from progressives like Warren who say he has kept rates too high for too long. Powell’s term ends in 2026, and he has said he would not resign before that, even if Trump asks him to.
The Fed is a politically independent agency and closely guards its reputation as such, but earlier this year Trump suggested he should at least have a say in monetary policy, including interest rates, because he has “made a lot of money.”
Warren, who sits on the Senate Finance Committee, is critical of both Powell and Bessent. In her statement, she said Bessent’s nomination may give Wall Street a “sigh of relief,” but working people will see “no help coming their way.”
“A Treasury Secretary must safeguard our financial system, ensure the fairness of our tax system, and expand economic opportunities for the middle class, particularly around housing affordability,” Warren said.
As lawmakers prepare to work with Trump’s nominees come January, Warren said she is willing to work across the aisle on behalf of the American people.
“I do not know if Mr. Bessent will transfer his loyalty from Wall Street investors to America’s workers, but I am willing to work with anyone to advance the interests of working families,” Warren said. “I look forward to reviewing the Treasury Secretary nominee’s record and meeting with him ahead of his confirmation hearing.”
