Bessent Proposes 3-Year Residency for Fed Regional Presidents

Treasury Secretary Scott Bessent announced Wednesday that he plans to advocate for a new policy requiring presidents of the Federal Reserve's 12 regional banks to have lived in their respective districts for at least three years before assuming office, a proposal that could enhance White House influence over the central bank.

Speaking at the New York Times DealBook Summit in New York, Bessent emphasized the need for stronger ties between regional bank leaders and the areas they serve. "Unless someone has lived in their district for three years, we're going to veto them," he said, highlighting what he described as a disconnect in the Federal Reserve's current structure. The initiative stems from Bessent's recent criticisms of the regional presidents, several of whom have publicly opposed lowering the Fed's benchmark interest rate at its December meeting.

The push comes amid broader tensions between the Trump administration and the Fed. President Donald Trump has repeatedly faulted the central bank for not reducing its short-term interest rate more aggressively, arguing it hampers economic growth. Lowering the rate typically eases borrowing costs for consumers and businesses,...