TechFlow News, March 26: According to JINSHI Data, U.S. Treasury Secretary Bessent discussed strengthening the Treasury’s oversight of the Federal Reserve by partially adopting elements of the Bank of England’s model—a move that would shake the relationship between the Fed and the U.S. government. According to informed financial industry executives, Bessent has expressed admiration to market participants for the UK government’s 1997 reforms, under which the Bank of England was granted operational independence in setting monetary policy. Although both central banks formally maintain independence from their respective governments, the Fed enjoys significantly greater autonomy in pursuing its congressionally mandated objectives—price stability and maximum employment—as well as in responding during periods of financial instability. Bessent has publicly stated that the Fed should undergo reform while preserving its monetary-policy independence. Last year, he published a 6,000-word article in the journal *International Economics*, criticizing the Fed’s large-scale bond purchase program—i.e., quantitative easing—as a “functional monetary policy experiment.” He also commended the Bank of England’s more cautious response to the 2022 UK gilt crisis, contrasting it with the Fed’s ongoing quantitative easing. He contends that the Fed’s quantitative easing policies contributed to the high post-pandemic inflation in the United States.
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