The White House last night called for a major review of the US Federal Reserve – piling more pressure on central bank chief Jerome Powell to cut interest rates after dismal jobs figures.
Treasury Secretary Scott Bessent said there must be an ‘honest, independent, nonpartisan review of the entire institution’ including its power to set interest rates.
Official figures showed the world’s biggest economy added just 22,000 jobs last month, falling well short of analyst forecasts.
That cemented hopes that the Fed will cut interest rates at its next meeting later this month, prompting an initial rally in Wall Street stocks.
Unhappy: Donald Trump tried to sack Lisa Cook, a member of the Fed’s board of governors, a nd he has previously publicly toyed with the idea of sacking Jerome Powell
However, stocks later went into reverse on fears that the jobs figures may herald a recession.
Bessent’s comments are the latest in a relentless series of attacks by Donald Trump’s administration on the Fed.
Last week, Trump tried to sack Lisa Cook, a member of the Fed’s board of governors. And he has previously publicly toyed with the idea of sacking Powell.Â
Earlier this week. Bank of England governor Andrew Bailey described the attacks on the Fed as a ‘very serious situation’.
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Donald Trump piles pressure on Fed after US jobs blow