According to BlockBeats, market analyst Gabriel Rubin has highlighted concerns regarding U.S. Treasury Secretary Besent's significant control over the selection process for the next Federal Reserve Chair. This control suggests that regardless of who is appointed, the Treasury Secretary will effectively have substantial influence over the Federal Reserve. Government statements indicate that Besent has set clear criteria for the successor to Jerome Powell: any regulatory agenda must align with the White House, interest rates should be significantly lowered due to exaggerated concerns over tariff-induced inflation, and the issuance and management of government debt should be handled by the Treasury, not the Federal Reserve.
Rubin warns that the United States is likely to face another economic or financial crisis eventually. A Federal Reserve with compromised independence means that during such a crisis, more power would be concentrated in the hands of the government. The central bank needs public trust and recognition to control inflation and ensure healthy credit, which the Treasury under U.S. President Donald Trump's administration cannot provide.
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