The US Treasury Department demanded Friday that the Financial Times retract a report about Treasury Secretary Scott Bessent's views on Federal Reserve oversight, calling the article's claims "false" and accusing the newspaper of publishing statements Bessent never made. Elliott Hulse, the acting assistant secretary for public affairs, sent a formal complaint to senior editors at the Financial Times and its parent company Nikkei Inc., disputing multiple claims in the story.
The Financial Times reported on 26 March that Bessent had discussed increasing oversight of the Federal Reserve in a way that resembled the Bank of England model, including regular communication between the Fed chair and the Treasury secretary over inflation targets. Treasury officials denied Bessent ever made such statements. Hulse wrote in the email: "At no time has the secretary 'discussed tightening the US Treasury's oversight of the Federal Reserve by adopting elements of the Bank of England's model.'"
Treasury officials took particular issue with the Financial Times headline, which stated Bessent had "praised" the Bank of England model for tighter oversight. Treasury officials noted that this characterization did not appear in the text of the story itself. The email also stated: "At no time has the secretary indicated, implied, or asserted that he 'could support the UK system in which the BoE governor corresponds regularly with the chancellor about the central bank's inflation target.'"
Bessent himself posted denials on social media Thursday, writing: "In short, FT has literally manufactured an entirely fake policy position for me and the Administration."
The Financial Times stood by its reporting. Finola McDonnell, a spokesperson for the newspaper, said in a statement: "We stand by our reporting and have included US treasury responses in the article." The Financial Times is not a member of Ipso, the UK's Independent Press Standards Organization, and it remains unclear whether Treasury officials will pursue additional action against the publication.
The US Treasury Department demanded Friday that the Financial Times retract a report about Treasury Secretary Scott Bessent's views on Federal Reserve oversight, calling the article's claims "false" and accusing the newspaper of publishing statements Bessent never made. Elliott Hulse, the acting assistant secretary for public affairs, sent a formal complaint to senior editors at the Financial Times and its parent company Nikkei Inc., disputing multiple claims in the story.
The Financial Times reported on 26 March that Bessent had discussed increasing oversight of the Federal Reserve in a way that resembled the Bank of England model, including regular communication between the Fed chair and the Treasury secretary over inflation targets. Treasury officials flatly denied this characterization. Hulse wrote in the email: "At no time has the secretary 'discussed tightening the US Treasury's oversight of the Federal Reserve by adopting elements of the Bank of England's model.'"
Treasury officials took particular issue with the Financial Times headline, which stated Bessent had "praised" the Bank of England model for tighter oversight. The complaint noted that this characterization did not appear in the text of the story itself, suggesting the headline misrepresented the underlying reporting. The email also stated: "At no time has the secretary indicated, implied, or asserted that he 'could support the UK system in which the BoE governor corresponds regularly with the chancellor about the central bank's inflation target.'"
Bessent himself posted denials on social media Thursday, writing: "In short, FT has literally manufactured an entirely fake policy position for me and the Administration."
The Financial Times stood by its reporting. Finola McDonnell, a spokesperson for the newspaper, said in a statement: "We stand by our reporting and have included US treasury responses in the article." The Financial Times is not a member of Ipso, the UK's Independent Press Standards Organization, and it remains unclear whether Treasury officials will pursue additional action against the publication.
The complaint reflects heightened concern among Treasury officials and financial markets about the Federal Reserve's political independence. The dispute comes as investors worry about threats to the central bank's autonomy in setting monetary policy based on economic conditions rather than political preferences.
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The sources also report that this complaint arises amid sensitivity over the Federal Reserve's independence due to President Donald Trump's threats to fire its chair, Jerome Powell, over policy decisions.