In a move that is fueling ongoing debates over economic policy and central bank independence, U.S. Treasury Secretary Kenneth Bessent publicly called on Federal Reserve Chair Jerome Powell to lower interest rates in response to a noticeable economic slowdown. The comments, made during a press conference in Washington, echo sentiments recently expressed by President Donald Trump, who has repeatedly denied any link between his administration’s tariff-heavy trade policies and the faltering economy.
Bessent’s statement marks a significant and somewhat controversial intervention in what is traditionally an area of monetary policy safeguarded from political influence. “We believe that a modest reduction in rates at this point would help stabilize markets, stimulate investment, and ensure that American families are protected from undue financial strain,” Bessent said, emphasizing that inflation remained under control and that consumer spending had shown signs of weakening.
This direct appeal to the Fed comes as recent economic indicators have begun flashing warning signs. U.S. GDP growth has slowed for two consecutive quarters, manufacturing output has dipped, and retail sales data suggest cautious consumer behavior. Although unemployment remains relatively low, job creation has softened, especially in sectors exposed to international trade and supply chains disrupted by tariffs.
President Trump, speaking to reporters earlier in the week, reiterated his administration’s position that tariffs are a long-term strategy to protect American interests, particularly against China. “Any slowdown we’re seeing is a result of bad policies from the past—we’re cleaning up that mess,” Trump claimed. He insisted that the tariffs were not to blame for economic softness, framing them instead as essential leverage in ongoing global trade negotiations.
The Federal Reserve, for its part, has not yet signaled a willingness to move swiftly on rates. Powell, known for his cautious approach and commitment to data-driven decisions, has maintained that while the central bank remains alert to risks, it is not inclined to adjust policy based on political pressure. In fact, Powell has repeatedly emphasized the Fed’s independence as crucial for maintaining market confidence and credibility.
Critics of the administration were quick to respond to Bessent’s remarks. Senate Democrats accused the White House of attempting to scapegoat the Fed for economic volatility caused by its own erratic policy moves, particularly the escalating trade war with key allies and partners. “This is political theater masquerading as economic strategy,” said Senator Elizabeth Warren, a member of the Senate Banking Committee.
Still, some analysts argue that Bessent’s comments reflect a broader concern about the resilience of the U.S. economy. With global growth slowing and geopolitical uncertainty rising, including tensions in Eastern Europe and the Middle East, there is increasing pressure on both fiscal and monetary authorities to provide coordinated support.
Whether the Federal Reserve responds to this call remains to be seen. The next meeting of the Federal Open Market Committee is scheduled for later this month, and markets will be watching closely for any shift in tone—or policy.
