Treasury Secretary Scott Bessent plans to require Federal Reserve regional bank presidents to live in their districts for three years before taking office, potentially giving the White House more influence. Bessent criticized several presidents for opposing rate cuts, aligning with President Trump’s push for lower rates to boost the economy.

The administration’s consideration of “vetoing” regional bank presidents represents a move to control the Fed, which traditionally operates independently. The Fed plays a crucial role in managing inflation and employment by setting interest rates that impact borrowing costs nationwide.

Bessent argues that the purpose of regional Fed banks is to provide diverse perspectives in interest rate decisions, challenging the dominance of the New York Fed. He questions the appointment of presidents living outside their districts, particularly in New York, suggesting a departure from the Fed’s intended structure.

Read more at Yahoo Finance: Bessent says White House may ‘veto’ Federal Reserve presidents