On the eve of the announcement of the new Federal Reserve Chair candidate, Bessenet publicly criticized Powell, revealing his true intentions

As the nomination for the Federal Reserve Chair approaches, U.S. Treasury Secretary Mnuchin, previously seen as a "moderate" voice in the Trump administration, has suddenly changed his stance and publicly launched the most severe criticism of current Federal Reserve Chair Jerome Powell to date. On Tuesday, January 20, local time, Mnuchin harshly criticized Powell's leadership and judgment during an interview with CNBC. He pointed out that Powell's plan to attend Wednesday's oral arguments regarding Federal Reserve Governor Lisa Cook's case was inappropriate, accusing Powell of attempting to use his authority to "put his thumb on the scale." This trial concerns the "life and death" of the Federal Reserve's independence. Wall Street Journal mentioned that UBS stated in a report on the 16th that if the court rules allow the White House to bypass the Federal Reserve Act to remove Governor Lisa Cook "for cause," then the legal door for Powell's dismissal would be completely opened. In addition to the accusations of judicial interference, Mnuchin also raised broad questions about the Federal Reserve's operational management. He criticized the Fed's asset purchases during and after the pandemic, which led to massive losses, and pointed out that "four to six" senior officials had resigned due to personal financial compliance and disclosure issues. Mnuchin bluntly stated: "If this happened at a Wall Street firm, the CEO would have been gone long ago." This series of fierce criticisms comes at a time when the market is closely watching the leadership transition at the Federal Reserve. Mnuchin revealed that Trump may decide on a successor to Powell as early as next week. Previously, Mnuchin had privately expressed concerns to the Justice Department about the investigation into the Fed's construction projects, fearing it would complicate the confirmation process for the new chair. According to insiders, the Trump administration hopes to ensure that Powell resigns from his governor position when his chair term ends in May next year. Mnuchin's public statements this time sharply contrast with his position over the past year, when he had advised Trump not to fire Powell. Now, the series of accusations he has listed—including Powell's failure to meet with prosecutors before a subpoena was issued last month—indicates that the Treasury is attempting to construct a negative narrative against Powell during this critical nomination period. It is worth noting that regarding Mnuchin's accusation that Powell's attendance at the court hearing was "inappropriate," the Wall Street Journal pointed out that Powell is not the first Federal Reserve Chair to attend such litigation; Paul Volcker attended the Supreme Court's debate on banking policy in 1985. Additionally, Mnuchin himself attended the Supreme Court debate on Trump's tariff powers last November