Treasury Secretary Scott Bessent discussed the Federal Reserve’s role in setting interest rates during an appearance on NBC’s Meet the Press on Sunday.

His remarks came amid ongoing questions about the relationship between the Federal Reserve, President Donald Trump, and interest rate policy.

Federal Reserve Chairman Jerome Powell suggested on August 22 that the central bank may move to cut interest rates in the near future.

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The signal followed months of pressure from President Trump, who has repeatedly called on Powell to lower rates as part of his broader economic agenda.

During the interview, host Kristen Welker asked Bessent whether Trump or Powell “sets” interest rates, noting the president’s past criticism of Powell and the removal of former Federal Reserve Governor Lisa Cook.

“The Fed Chair doesn’t set interest rates, the FOMC sets interest rates, so it is a board — ” Bessent began, before Welker interrupted.

She then asked whether Bessent believed Trump should “have a say” in the decision to cut rates.

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“President Trump is going to make his views known just like President Biden did. President Biden in the State of the Union, his last State of the Union, said he thought there was going to be an interest rate cut,” Bessent responded.

“Senator Warren called for a 75 basis interest rate cut this time this year.”

In March 2024, Joe Biden predicted that the Federal Reserve would soon move to lower rates, later praising the bank’s decision to cut as a “declaration of progress.”

Tensions between Trump and the Federal Reserve have grown since the president announced sweeping reciprocal tariffs earlier this year.

Powell has expressed concern that the uncertainty created by the tariffs could complicate the Fed’s efforts to manage the economy.

On July 1, Powell told a panel that the central bank would have already lowered rates had the tariffs not been implemented.

The disagreements have also sparked criticism from lawmakers.

In July, Rep. Anna Paulina Luna (R-FL) announced on X that she was referring Powell to the Department of Justice to investigate alleged perjury tied to the Federal Reserve’s more than $2 billion headquarters renovation project.

I am criminally referring Jerome Powell to the DOJ to investigate perjury regarding his crazy $2.5BN building.

— Rep. Anna Paulina Luna (@RepLuna) July 17, 2025

Despite the strain, Trump said in a Newsmax interview that he has no plans to remove Powell from his position, stating that doing so would “disturb the market.”

However, Trump did move to remove Lisa Cook from the Federal Reserve Board on August 25, alleging that she signed documents claiming residency in two different states.

Cook has since filed a lawsuit against the Trump administration over her termination.

On Thursday, the Department of Justice launched a mortgage fraud investigation into Cook, focusing on the allegations related to her residency documents.

The developments have added new scrutiny to the relationship between the White House and the central bank, as the Federal Reserve prepares for its upcoming decisions on monetary policy.

Powell and the Federal Open Market Committee are expected to weigh the possibility of rate cuts in the months ahead, balancing pressure from the administration with the Fed’s independent role in managing economic conditions.

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