2025-09-02T00:21:03Z

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Can you believe that the U.S. Treasury Secretary just declared that the Federal Reserve has been making 'a lot of mistakes'? It’s not just a slip of the tongue; it’s a bombshell statement that could shake the very foundations of our financial stability. Scott Bessent, in a startling interview, defended Donald Trump’s right to fire central bank governor Lisa Cook, igniting a fiery debate on the independence of one of the world’s most critical financial institutions.

For months, President Trump has been vocal about his frustrations with the Fed and its chair, Jerome Powell, accusing them of failing to lower interest rates adequately. This conflict raises eyebrows, especially since independent central banks are often cited as essential for maintaining a balanced global financial system. Bessent, however, downplayed the possible chaos, insisting, “S&P’s at a new high and bond yields are fine, so we haven’t seen anything yet.” But how true is that? Could the president’s meddling truly have no repercussions?

His comments come on the heels of a stark warning from Christine Lagarde, the president of the European Central Bank (ECB). Lagarde, who once served as France’s finance minister, cautioned that Trump undermining the Fed's independence is a “very serious danger” to the global economy. She argued that if U.S. monetary policy were to bend to the whims of the current administration, the repercussions could be catastrophic, given that America is the world’s largest economy.

Imagine a scenario where monetary policy isn’t driven by sound economic principles, but by political agendas. Lagarde’s chilling words resonate: “If US monetary policy were no longer independent… the effect on the American economy could – as a result of the effects this would have around the world – be very worrying.”