Sen. Elizabeth Warren (D-Mass.) has voiced strong concerns over President-elect Trump’s selection of Scott Bessent as Treasury secretary, particularly regarding potential interference with the Federal Reserve.
In a statement Monday, Warren emphasized, “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.
It would be a serious error for the Trump administration to interfere with the Fed’s independence, as Mr. Bessent has suggested.” Bessent, who was announced as Trump’s Treasury secretary pick on Friday, would take the lead of the economic team if confirmed by the Senate.
Warren prepares for a fight as she scrutinizes Bessent’s record ahead of his confirmation hearing
His role would include implementing the tariffs Trump promised during his campaign, which are set to transform global trade, though his nomination announcement did not reference tariffs specifically. As the founder and CEO of the hedge fund Key Square Group, Bessent also served as an economic advisor during Trump’s campaign.
Powell, the current Fed chair, was appointed by Trump in 2017 and reappointed by President Biden in 2021, despite criticism from progressives like Warren, who argue that Powell’s decision to keep interest rates high for extended periods harms working-class Americans.
Powell’s term runs until 2026, and he has indicated he will not step down even if Trump requests it. Although the Federal Reserve is a politically independent body, Trump previously suggested he should have input on monetary policy due to his financial success.
Warren, who sits on the Senate Finance Committee, has expressed disapproval of both Powell and Bessent, stating that Bessent’s nomination might reassure Wall Street but would offer little support to working families.
She stated, “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.”
As lawmakers prepare to engage with Trump’s nominees in January, Warren expressed her willingness to collaborate across party lines for the benefit 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, adding that she looks forward to reviewing Bessent’s record and meeting with him ahead of his confirmation hearing.
