The move is another effort by the Trump administration to have more control over the US Federal Reserve, which, historically, has been free of day-to-day politics.By AP and ReutersPublished On 3 Dec 20253 Dec 2025Click here to share on social mediashare2ShareUnited States Treasury Secretary Scott Bessent has said he would push a new requirement that the Federal Reserve’s regional bank presidents live in their districts for at least three years before taking office, a move that could give the White House more power over the independent agency.In comments at the New York Times’s DealBook Summit on Wednesday, Bessent said that “there is a disconnect with the framing of the Federal Reserve” and added that, “unless someone has lived in their district for three years, we’re going to veto them”.Recommended Stories list of 4 itemsend of listBessent has stepped up his criticism of the Fed’s 12 regional bank presidents in recent weeks after several of them made clear in a series of speeches that they opposed cutting the Fed’s key rate at its next meeting in December. US President Donald Trump has sharply criticised the Fed for not lowering its short-term interest rate more quickly. When the Fed reduces its rate, it can over time lower borrowing costs for mortgages, auto loans, and credit cards.The prospect of the administration “vetoing” regional bank presidents would represent another effort by the administration to exert more control over the Fed, an institution that has traditionally been independent from day-to-day politics.The Federal Reserve seeks to keep prices in check and support hiring by setting a short-term interest rate that influences borrowing costs across the economy.Complicated structureThe Fed has a complicated structure that includes a seven-member board of governors based in Washington as well as 12 regional banks that cover specific districts across the US. The system, set out in the Federal Reserve Act, was designed to ensure that US central bank policy reflected input from officials from around the country, not just political appointees based in Washington. Advertisement The Federal Reserve Act does not impose any residency requirements on regional bank presidents. Regional Fed banks have repeatedly argued that in selecting new leaders, merit and ability have driven their decision-making.The seven governors and the president of the New York Fed vote on every interest-rate decision, while four of the remaining 11 presidents vote on a rotating basis. But all the presidents participate in meetings of the Fed’s interest-rate setting committee.Bessent, who is in the process of selecting a candidate to recommend to Trump as the successor for Fed Chair Jerome Powell, said the fact that many of the current regional bank presidents were hired from ou …
