The U.S. Treasury Secretary said that the President has the right to "intervene" in the Federal Reserve and always supports a strong dollar policy.

U.S. Treasury Secretary Beasnet expressed at a congressional hearing on Wednesday that the president has the right to influence the decision-making process of the Federal Reserve, sparking concerns about the independence of the Fed's monetary policy once again. Beasnet attended a hearing at the U.S. House Financial Services Committee that day. Missouri Democratic Representative Emanuel Cleaver asked him whether he would recommend the president to "interfere in the decision-making of the Federal Reserve in terms of language and politics." Beasnet responded, "It is his right... as it is the right of everyone here." He apparently meant that members of Congress also have the right to express their opinions on central bank policies. Nevertheless, Beasnet also emphasized that he believes the Federal Reserve should maintain its monetary policy independence, which is based on public trust and should be held accountable. His remarks have drawn attention, and the Fed has refused to comment on this. Over the past year, U.S. President Trump has continued to pressure the Federal Reserve to lower interest rates. Trump has also tried to dismiss Fed board member Powell, accusing him of mortgage fraud, but Powell denied the allegations. Currently, the U.S. Department of Justice is also investigating Fed Chair Powell's testimony last year in the Senate regarding the cost of renovating the Fed's headquarters. Powell previously stated that the threat of criminal charges was a result of the Fed's refusal to succumb to political pressure. Several economists have warned that if the independence of the Fed is compromised, it will weaken market confidence in the U.S. economy and financial system. During the hearing, New York Democratic Representative Ritchie Torres further asked if the president could dismiss the Fed Chair or board members due to policy disagreements. Beasnet said he had "no opinion" on this. Beasnet also pointed out that there are differing views within the Trump administration on whether the "unitary executive theory" applies to the Fed. The theory holds that the power granted to the executive branch by the Second Amendment of the Constitution should be exclusively held by the president. Beasnet said, "We can only wait for the Supreme Court to decide," and mentioned that the Supreme Court has not yet ruled on Trump's attempt to dismiss Powell. The independence of the Federal Reserve has long been seen as one of the cornerstones of the U.S. financial system, with its institutional foundation dating back to the Federal Reserve Act of 1913. Powell stated last week that he believes the Fed has not lost its independence, nor does he believe it will in the future, emphasizing that the system is designed to separate monetary policy from the control of "directly elected officials." It is worth noting that Beasnet had previously stated that the president would not interfere with the independence of the Fed, but he changed his tune on Wednesday, claiming that the Fed "devastated the American working class" on inflation issues, losing public trust, and mentioning the "cost overruns" of the Fed's headquarters renovation project. Powell, on the other hand, stressed that the Fed is firmly committed to its mission of maintaining price stability and defended the $2.5 billion renovation project, stating that the nearly century-old building requires expensive structural repairs, overseen by an independent inspector general. In addition, Beasnet also addressed the issue of the U.S. dollar during the hearing. The U.S. dollar index fell by over 9% last year. He told Republican Representative Bill Foster of Illinois, "We always support a strong dollar policy." However, this position contradicts Trump's preference for a weak dollar, which typically helps boost U.S. export competitiveness.