What Would a New Treasury-Fed Accord Look Like?: Essay

Donald Trump is hoping that he’ll be the first president to pick a fight with the Federal Reserve and win. The White House wants the central bank to bolster MAGA-nomics by bringing down borrowing costs, and Treasury Secretary Scott Bessent has urged Chair Jerome Powell to be more “imaginative,” even calling for a “revamp” of the Fed itself. One key candidate to replace Powell, former Fed official Kevin Warsh, has gone further, arguing for a new Treasury-Fed accord to replace the 1951 deal that shaped central bank independence.

Trump now has the biggest opening in decades to exert influence ...