The soon-to-be top Democrat on the Senate Banking Committee cautioned Scott Bessent, Donald Trumpās pick to be the next treasury secretary, to respect the Federal Reserveās policy independence.
āI have been a fierce critic of Fed Chair Jerome Powellās extreme interest rate hikes and lack of transparency, but I have never questioned that it is his job to make those decisions. It would be a serious error for the Trump administration to interfere with the Fedās independence, as Mr. Bessent has suggested,ā Sen. Elizabeth Warren (D-Mass.) said in a statement Monday.
The Constitution does not permit the Legislature to allocate government functions to created non-government entities. Any entity that performs a function must fall under the Executive, and be subordinate thereto. The only purpose of the Federal Reserve is to contrive a means for creating a fourth branch of government in violation of the Constitution. I think Trump could rightly take the position that Congress had no authority to create the Fed, that the Fed was inherently part of the Executive, and therefore he would banish it and rely on the Dept. of the Treasury.