Scott Bessent calls for probe into ‘the entire Federal Reserve institution'
has called for an inquiry into the 'entire Federal Reserve institution', in the latest sign of how top Trump administration officials are cranking up pressure on the central bank.
'What we need to do is examine the entire
Federal Reserve
institution and whether they have been successful,' Mr Bessent told CNBC on Monday.
Mr Bessent's comments come as
US President Donald Trump
and his lieutenants have sharply criticised the Fed and its chair Jay Powell for refraining to cut borrowing costs this year. Trump last week asked a group of Republican lawmakers whether he should sack Powell, but later clarified that he had no plans to do so unless he needs to 'leave for fraud'.
Mr Trump's government has also recently opened a new front in their campaign against the Fed, with the president's budget director Russell Vought repeatedly alleging that a $2.5 billion (€2.1 billion) renovation of the central bank's headquarters has been grossly mismanaged.
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Bessent amped up his criticism of the Fed on Monday, saying that if the Federal Aviation Administration had made as many mistakes, 'then we would go back and look at why this has happened'.
The Fed inspector general is reviewing the renovation of its headquarters, which involves an overhaul of two buildings that overlook the National Mall and is $700 million over budget. Powell has also written to senior senators to explain how the US central bank is reining in costs.
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Donald Trump's escalating attacks on Federal Reserve unnerve investors
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On Monday, the Fed published a video tour of the two buildings, which were built in the 1930s, that are undergoing works.
The focus on the plans follows repeated attacks from Mr Trump on Mr Powell over the Fed's stance on interest rates, with the president labelling the central bank chair a 'stubborn mule'.
After enacting 1 percentage point in rate cuts over September to December, most rate-setters want to keep borrowing costs on hold at 4.25 to 4.5 per cent as they weigh up the impact of the US president's trade war on inflation.
David McWilliams on how 'big incentives' to build could save Dublin city
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The Consumer Price Index figure for June showed prices rising at their fastest pace since February, with the headline rate hitting 2.7 per cent. Central bankers target 2 per cent personal consumption expenditures inflation.
Economists are expecting further rises in price pressures over the coming months, but Trump wants rates slashed to as low as 1 per cent.
Mr Bessent claimed that the Fed was 'fear-mongering over tariffs' and said the US had seen 'great inflation numbers'.
Mr Bessent was seen as one of the front-runners to replace Mr Powell, who is set to step down as chair in May 2026. But Mr Trump said this month that he was happy where his treasury secretary is, before indicating that National Economic Council chair Kevin Hassett was among the top contenders. - Copyright The Financial Times Limited 2025
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Irish Daily Mirror
an hour ago
- Irish Daily Mirror
Trump's deal with Europe sucks for Ireland and what the EU is importing
Europe is poised to embrace a surge of American vehicles and energy following Brussels securing an eleventh-hour trade agreement with Donald Trump, barely averting a transatlantic trade war. The pact, revealed on Sunday, means the European Union will now encounter a uniform 15 per cent levy on exports to the United States—cutting in half the 30 per cent rate previously threatened by the former president. In return, Mr Trump stated the EU had consented to eliminate tariffs completely on US goods entering the bloc. Nevertheless, in stark contrast to the EU's negotiations with the UK over Brexit, where complex matters such as implementing trade obstacles across the Irish Sea arose, this time Ireland's interests appear to have been relegated to the lower end of the bloc's priorities. How significant is Trump's agreement with Europe? Under the arrangement, the EU will purchase $750bn (£558bn) of energy from the United States and pledge an additional $600bn in investments into the world's largest economy. "We are agreeing that the tariff straight across for automobiles and everything else will be a tariff of 15pc," said Mr Trump, who has consistently advocated for Europe to purchase more American oil and gas. "We have the opening up of all the European countries, which were essentially closed. You were not exactly taking our autos, you weren't exactly taking our agriculture. Now it is open. "It is open for our companies to go in and do a good job." Europe is set to welcome a wave of American cars and energy after Brussels clinched a deal (Image: Getty) Mr Trump stated the agreement would provide Europeans with enhanced access to US pickup trucks and SUVs, with commerce between the two economies now poised to grow. "They [Europe] are going to make a lot of money with this," he said. "I think everybody is. And it is going to bring a lot of unity and friendship." Financial markets have been rattled in recent months by Mr Trump's fluctuating trade policies, with the tariff standoff generating uncertainty for global investors and governments. What does Trump hope to achieve with his Europe trade deal? Ms von der Leyen said the objective of the agreement was to "rebalance" trade flows between the two sides. "The starting point was an imbalance, a surplus on our side and a deficit on the US side, and we wanted to rebalance that," she said. "We wanted to do it in a way that trade goes on between the two of us, across the Atlantic. "The two biggest economies should have good trade flowing: rebalance, but enable trade on both sides, which means good jobs on both sides of the Atlantic, which means prosperity on both sides of the Atlantic. That was important to us." The agreement excludes steel and aluminium, which will still face higher tariffs of 50 per cent when exported to the US. British exports of the same materials face a reduced tariff of 25 per cent. Bad for Ireland: drugs firms left out of deal This exclusion could prove a major blow to Ireland, which depends heavily on its pharmaceutical exports. "We have to have them made in the US," Mr Trump declared. "We want them made in the US. Pharmaceuticals are very special. "We can't be in a position where we are relying on other countries. Europe is going to make pharmaceuticals, drugs and everything else for us too, a lot, but we are going to make our own." The Irish government has voiced concerns that looming US tariffs could deal a major blow to the country's pharmaceutical sector, which employs around 45,000 people. Ministers are particularly worried about the impact on multinational drug companies based in Ireland, following signals from Washington that the pharmaceutical industry may be the next target in a broader trade clampdown. While the EU's new trade agreement with Donald Trump excluded pharmaceuticals from immediate tariff hikes, the US has made clear that it still plans to address the sector in separate talks. Claus Vistesen, from Pantheon Macroeconomics, stated that the agreed 15 per cent tariff was less severe than many feared, and unlikely to alarm financial markets-but he warned it would still dent both the EU and US economies. "Trump is finding a middle ground," Mr Vistesen commented. "He is still shooting himself in the foot. US consumers will pay higher prices, and growth in trading partners will be lower than it would have otherwise been."
The Irish Sun
4 hours ago
- The Irish Sun
Hilarious moment Donald Trump's golf caddie appears to subtly drop ball in prime spot before he arrives to take shot
THIS is the hilarious moment Donald Trump's golf caddy appears to drop his ball into a prime spot before he takes his shot. A video clip has emerged which shows two golf caddies alongside the US President as he drives a golf cart around Turnberry's Ailsa course, in Scotland. 6 Donald Trump is on a five-day visit to Scotland, expected to end on Tuesday Credit: Getty 6 Footage appeared to show a caddy drop the President's ball in a prime spot Credit: X / RoguePOTUSStaff 6 The US leader was enjoying a round of golf on Turnberry's Ailsa course Credit: X / RoguePOTUSStaff He donned a white USA baseball cap and was joined by Trump, 79, is seen being escorted down to the course, with a convoy of 20 other carts following close behind. The caddies go ahead of the US leaser and one appears to try and secretly place a golf ball on the ground. The President then gets out and claims to have made the shot himself. Read More Trump waves for cameras on the third green at the southeast end of the course before the party moves on. One person who watched the footage circulating on X wrote: "Caddy did that so smoothly. Can only imagine how many times he's done it." "I want to know how he finds caddies to do that for him," added another. This comes as the US President arrived aboard Air Force One at around 8.30pm on Friday for his five-day private visit to Bonnie Scotland. Most read in The Sun After waving to the crowds, he was welcomed by Scottish Secretary Ian Murray before being whisked to his luxury Turnberry resort 20 miles down the Ayrshire coast. Villagers waved as the convoy passed through nearby Kirkoswald and later arrived at the resort at around 9.30pm. And he wasted no time in taking to the green after being seen teeing off at the luxury resort. Several protests were planned, with opponents of Mr Trump gathering in both Edinburgh and Aberdeen earlier this week. The Stop Trump coalition has planned what it has described as being a "festival of resistance". Activists also shut down the Forth Road Bridge in South Queensferry as part of a huge protest ahead of Trump's visit. 6 Trump donned a white USA baseball cap Credit: Getty 6 The footage has circulated social media platform X Credit: Getty 6 The President was playing with his son Eric Credit: Getty Climate campaigners from Greenpeace confirmed that 10 activists abseiled from the massive 156m bridge to block an INEOS tanker. A large number of police and military personnel were seen searching the grounds at the golf resort to ensure Mr Trump's safety before he teed off. A high-profile security operation was in full swing with land, sea and air coverage from police and security services while a number of guests were checked over. Secret service agents with sniffer dogs checked bushes as snipers were positioned on a platform on the edge of the course and the roof of the hotel. Uniformed and plain clothes cops guarded all access points to the course, including roads, footpaths and the beach. Amid the search, a few golfers were also spotted at the course, enjoying an early-morning game. A number of onlookers had gathered at the entrance to Turnberry hoping to catch a glimpse of the game. But they were not let anywhere near. Police also had road closures in place, with limited access for locals and members of the media. Upon his arrival, Mr Trump told reporters: "There's no place like Turnberry. It's the best course in the world." As well as visiting Trump Turnberry, Mr Trump will later head to Aberdeenshire and visit his golf resort in Balmedie. During his stay, he will officially open his second course at Menie, named in honour of his late mother, Mary Anne MacLeod. His visit is expected to last until Tuesday, July 29. The President is also scheduled to meet Scottish First Minister John Swinney and Prime Minister Sir Keir Starmer during his trip. After landing in Scotland, Mr Trump said the "invasion" of migrants is "killing" Europe and told the leaders to "get their act together". But when asked about illegal immigration, Mr Trump said a "horrible invasion" was taking place in Europe which needs to stop. He said: "On immigration, you better get your act together. 'You're not going to have Europe anymore, you've got to get your act together. 'As you know, last month we had nobody entering our country – nobody, [we] shut it down.' He added: 'You've got to stop this horrible invasion that's happening to Europe.' Mr Trump, who made a crackdown on illegal immigration a major policy in his second term at the White House, boasted: "Last month we had nobody entering our country." A massive £5million security operation has been rolled out to ensure his safety, with around 6,000 police officers drafted in from across the UK to support the efforts. We previously told how police and security services assessed fears that Trump could be assassinated during his visit to Scotland after he survived an attempt at a rally in Pennsylvania last year. David Threadgold, General Secretary of the Scottish Police Federation, said "a huge amount of threat assessment and intelligence gathering' took place ahead of the visit.
RTÉ News
4 hours ago
- RTÉ News
Tariffs aren't good news but it could have been much worse
While the crucial US EU trade deal announced this weekend does bring certainty for businesses, there are significant drawbacks. Fundamentally, tariffs are negative for trade. The US is a significant export market for Ireland, and many sectors now face duties of 15% which did not exist last year. The biggest issue is pharmaceuticals, which are the largest Irish export to the US, valued at €44bn in 2024. In recent months US President Donald Trump had threatened enormous duties on drugs imported by America. He had ordered a national security investigation of the pharmaceutical sector. Last night, Tánaiste Simon Harris said his understanding was that after the investigation concludes the maximum tariff which could be imposed would be 15%. So, while the threat of more damaging duties is averted, pharmaceuticals made in Ireland may well face 15% tariffs in future, up from zero at present. Another key sector for Ireland is the manufacture of computer chips. Like pharmaceuticals it has been subject to a separate investigation by the Trump administration and faced the possibility of punitive tariffs, but it too could face a 15% tariff after the investigation ends. Last night, European Commission President Ursula Von Der Leyen said there was no decision yet regarding spirits exported to the US. This is critically important to Ireland's whiskey industry which has already seen several recent closures. There had been speculation that sector could have been part of a zero-for-zero tariff arrangement, but that is not yet agreed. Another important area for Ireland is aircraft leasing. Ms Von Der Leyen said last night that aviation would be part of a tariff-free arrangement. For other EU countries the massive duty of 27.5% which was imposed on European cars now falls to 15%. Some existing tariffs will be folded into that baseline 15%, meaning it would be an all-in tariff. For example, it is expected to include the existing "most favoured nation" duties of 4.8% which exist currently under World Trade Organization rules. The fact there is a deal at all avoids the threat of a prolonged tit-for-tat trade war. It means businesses can plan, investments can be made, and job-creating projects can proceed. But exporters are already seeking Government support as they navigate the new reality of the Trump administration's tariffs. The EU-US agreement is not a trade deal in the usual sense. Normally these pacts are negotiated over years and culminate in a document running to hundreds of pages. What was announced yesterday was the framework of a deal with much detail yet to be finalised. Yesterday wasn't the end of the negotiations, but it was a milestone.
