Fed Rules Face New Pressure from Trump Administration

The United States is seeing a new push to change how banks are watched. After the 2008 crash, rules were made that many say slow growth. The Trump team wants those rules eased and is trying to get more control over the Federal Reserve’s work. Fed leaders have been told to send new rules to the White House for review. This would let the President’s office look at every rule, a big change from past practice. Some Fed staff are unsure how to act and have asked other independent regulators for help. The Treasury Department is also stepping in. Secretary Scott Bessent says he will guide bank rules and push the Fed to act faster. This has caused friction because the Fed prefers to keep its own process. People who used to work at the Fed say that letting politics decide rules could hurt banks. They worry that powerful banks might influence decisions.An independent review body can keep the system safer. There are new changes being considered for how much money banks must set aside. Also, examiners who check banks every day might have fewer reasons to raise alarms. These changes could reduce the safety net for the economy. Some Fed officials think that keeping the center independent is best. Others believe the Treasury should have more say to keep all regulators aligned. The Fed’s board, which is now a 4‑3 Republican majority, still meets to decide rules. Even with political pressure, the board tries to keep a balance between parties. If former Fed Governor Kevin Warsh is confirmed, he might push for even less Fed control. He has said that the central bank should not be separate from the economy. The whole situation shows how politics can reach into banking rules. It raises questions about who should decide what protects the economy.