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3d ago

Bessent Threatens 'Veto' of Regional Fed Presidents, Pushes 3-Year Residency Rule

The proposal positions the White House for a possible clash over February’s routine board reappointment of all 12 regional Fed presidents.

Treasury Secretary Scott Bessent speaks during an event on "Trump Accounts" for kids in the Roosevelt Room of the White House, Tuesday, Dec. 2, 2025, in Washington. (AP Photo/Evan Vucci)
U.S. Treasury Secretary Scott Bessent looks on as he speaks to the media, following the trade talks between the U.S. and China, in Kuala Lumpur, Malaysia October 26, 2025. REUTERS/Hasnoor Hussain
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Overview

  • Treasury Secretary Scott Bessent said he will advocate requiring regional Federal Reserve bank presidents to have lived in their districts for at least three years.
  • Speaking at the New York Times DealBook Summit, he warned the White House would "veto" nominees who do not meet that threshold.
  • No formal rule change has been enacted, and the administration has not detailed a legal pathway to impose such a requirement.
  • The Fed’s Board of Governors approves regional presidents, with all 12 up for routine reappointment in February, and the board has never rejected one.
  • The push follows friction over interest-rate policy, with several regional presidents signaling opposition to near-term cuts as President Trump presses for faster reductions.