{"id":4232,"date":"2025-12-03T22:28:57","date_gmt":"2025-12-03T22:28:57","guid":{"rendered":"https:\/\/inernews.online\/?p=4232"},"modified":"2025-12-03T22:28:57","modified_gmt":"2025-12-03T22:28:57","slug":"bessent-to-push-residency-requirement-for-regional-us-fed-bank-presidents-business-and-economy-news","status":"publish","type":"post","link":"https:\/\/inernews.online\/?p=4232","title":{"rendered":"Bessent to push residency requirement for regional US Fed bank presidents | Business and Economy News"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div id=\"\">\n<p class=\"article__subhead\"><em>The move is another effort by the Trump administration to have more control over the US Federal Reserve, which, historically, has been free of day-to-day politics.<\/em><\/p>\n<\/div>\n<div>\n<div class=\"article-dates\">\n<p><span class=\"screen-reader-text\">Published On 3 Dec 2025<\/span><span aria-hidden=\"true\">3 Dec 2025<\/span><\/p>\n<\/div>\n<div class=\"rich-share\" data-testid=\"rich-share\">\n<div class=\"rich-share__wrapper\">\n<div class=\"rich-share__button-wrapper\"><button class=\"rich-share__button row\" aria-expanded=\"false\"><\/p>\n<p>Click here to share on social media<\/p>\n<p><svg class=\"icon icon--share2 icon--primary icon--16 \" viewbox=\"0 0 20 16\" version=\"1.1\" aria-hidden=\"true\"><title>share2<\/title><path fill=\"#000\" fill-rule=\"evenodd\" d=\"M11.688 9.048c-.659 0-1.252.282-1.673.733l-4.92-2.45c.016-.115.028-.232.028-.352 0-.117-.011-.23-.027-.343l4.913-2.423a2.285 2.285 0 0 0 1.68.739C12.964 4.952 14 3.899 14 2.6 14 1.302 12.965.25 11.688.25S9.377 1.302 9.377 2.601c0 .117.01.23.027.343L4.49 5.367a2.285 2.285 0 0 0-1.68-.739C1.536 4.628.5 5.681.5 6.979c0 1.299 1.035 2.35 2.312 2.35.659 0 1.252-.281 1.673-.731l4.92 2.45a2.357 2.357 0 0 0-.029.351c0 1.299 1.035 2.351 2.312 2.351S14 12.698 14 11.399s-1.035-2.35-2.312-2.35Z\" clip-rule=\"evenodd\"\/><\/svg><\/button><\/p>\n<p class=\"rich-share__social-text\">Share<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div aria-live=\"polite\" aria-atomic=\"true\">\n<p>United States Treasury Secretary Scott Bessent has said he would push a new requirement that the Federal Reserve\u2019s regional bank presidents live in their districts for at least three years before taking office, a move that could give the White House more power over the independent agency.<\/p>\n<p>In comments at the New York Times\u2019s DealBook Summit on Wednesday, Bessent said that \u201cthere is a disconnect with the framing of the Federal Reserve\u201d and added that, \u201cunless someone has lived in their district for three years, we\u2019re going to veto them\u201d.<\/p>\n<section class=\"more-on\">\n<h2 class=\"more-on__heading\">Recommended Stories<!-- --> <\/h2>\n<p><span class=\"screen-reader-text\">list of 4 items<\/span><span class=\"screen-reader-text\">end of list<\/span><\/section>\n<p>Bessent has stepped up his criticism of the Fed\u2019s 12 regional bank presidents in recent weeks after several of them made clear in a series of speeches that they opposed cutting the Fed\u2019s key rate at its next meeting in December. US President Donald Trump has sharply criticised the Fed for not lowering its short-term interest rate more quickly. When the Fed reduces its rate, it can over time lower borrowing costs for mortgages, auto loans, and credit cards.<\/p>\n<p>The prospect of the administration \u201cvetoing\u201d regional bank presidents would represent another effort by the administration to exert more control over the Fed, an institution that has traditionally been independent from day-to-day politics.<\/p>\n<p>The Federal Reserve seeks to keep prices in check and support hiring by setting a short-term interest rate that influences borrowing costs across the economy.<\/p>\n<h2 id=\"complicated-structure\">Complicated structure<\/h2>\n<p>The Fed has a complicated structure that includes a seven-member board of governors based in Washington as well as 12 regional banks that cover specific districts across the US. The system, set out in the Federal Reserve Act, was designed to ensure that US central bank policy reflected input from officials from around the country, not just political appointees based in Washington.<\/p>\n<p>The Federal Reserve Act does not impose any residency requirements on regional bank presidents. Regional Fed banks have repeatedly argued that in selecting new leaders, merit and ability have driven their decision-making.<\/p>\n<p>The seven governors and the president of the New York Fed vote on every interest-rate decision, while four of the remaining 11 presidents vote on a rotating basis. But all the presidents participate in meetings of the Fed\u2019s interest-rate setting committee.<\/p>\n<p>Bessent, who is in the process of selecting a candidate to recommend to Trump as the successor for Fed Chair Jerome Powell, said the fact that many of the current regional bank presidents were hired from outside their districts is at odds with the spirit of how the US central bank\u2019s system was designed.<\/p>\n<p>Bessent argued last month in an interview on CNBC that the reason for the regional Fed banks was to bring the perspective of their districts to the Fed\u2019s interest rate decisions and \u201cbreak the New York hold\u201d on the setting of interest rates.<\/p>\n<p>But now, he said last month, \u201cthree, maybe four\u201d of the Fed presidents were appointed from outside their districts, with some living in New York.<\/p>\n<p>\u201cI\u2019m not sure that\u2019s the way the Federal Reserve was designed,\u201d Bessent said in the interview.<\/p>\n<\/div>\n<p><br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The move is another effort by the Trump administration to have more control over the US Federal Reserve, which, historically, has been free of day-to-day politics. Published On 3 Dec 20253 Dec 2025 Click here to share on social media share2 Share United States Treasury Secretary Scott Bessent has said he would push a new [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4233,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-4232","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-us-canada-news"],"_links":{"self":[{"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/posts\/4232","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/inernews.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4232"}],"version-history":[{"count":0,"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/posts\/4232\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/media\/4233"}],"wp:attachment":[{"href":"https:\/\/inernews.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4232"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/inernews.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4232"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/inernews.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4232"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}