—
Source: Fortune.com
Summary
Treasury Secretary Scott Bessent said it’s up to President Donald Trump to decide whether to sue Federal Reserve chair nominee Kevin Warsh if he fails to lower interest rates. Trump previously joked that he might sue Warsh if he doesn’t lower rates, but later said it was just a joke. Sen. Elizabeth Warren pressed Bessent on the issue, asking him to commit that Warsh won’t be sued or investigated by the Justice Department if he doesn’t cut interest rates. Bessent replied that it’s up to the president.
Our Reading
The numbers tell one story.
Trump’s joke about suing Warsh was met with skepticism, and Sen. Elizabeth Warren’s questioning of Bessent revealed the tension between the administration and the Fed. The investigation into Powell’s Senate testimony has raised concerns about the administration’s willingness to threaten the Fed’s independence. Trump’s nominee for Fed chair, Kevin Warsh, may face a tough road to confirmation.
Bessent’s response that it’s up to the president to decide whether to sue Warsh only added to the uncertainty. Meanwhile, Sen. Thom Tillis and Sen. Tim Scott have expressed concerns about the administration’s actions, with Tillis saying he won’t vote to approve Warsh until the investigation into Powell is resolved.
Original observation: The joke’s the thing that’s not funny anymore.
Author: Evan Null
