Bernstein stated that Powell takes a tough stance on inflation, and Trump allows the Federal Reserve to make decisions independently.

US Treasury Secretary Scott Benett expressed confidence in the new Federal Reserve Chairman Kevin Wash, stating that President Trump has given Wash the autonomy to make decisions. "He is tough when it comes to talking about inflation," Benett said on CNBC on Wednesday. He believes that Wash will "find the best way to balance inflation and the economy." When asked if he had discussed the inappropriate timing of a rate cut with Trump, Benett said that Trump "has expressed confidence in Kevin Wash both publicly and privately." Benett predicts that the US economy will accelerate without causing inflation for the rest of the year. In another speech later on Tuesday, he also predicted that prices would fall as tensions ease with Iran. Wash chaired his first Federal Reserve policy meeting last week and, despite Trump's strong call for a rate cut, he voted along with other members of the Federal Open Market Committee to keep rates unchanged. As inflation rears its head again, Federal Reserve policymakers are gradually changing their inclination to cut rates, with many now considering raising borrowing costs in 2026. In a Q&A session after his speech at the New York Economic Club on Tuesday, Benett said that Trump understands "that a government brought down by the bond market is more than a government brought down by a howitzer." This statement clearly refers to the political consequences of inflation driving up long-term borrowing costs. He said, "Therefore, I believe he has confidence in taking the right action with the Federal Reserve Chairman." "Regarding the Federal Reserve, I hear the green light for rate hikes," wrote Neil Dutta, Director of Economic Research at Renaissance Macro Research, summarizing Benett's remarks on Tuesday.