U.S. Treasury Secretary Denounces 'Fake News' on Fed Reform Speculation

On March 27, the Financial Times (FT) previously reported that U.S. Treasury Secretary Steven Mnuchin had discussed with market participants strengthening the Treasury Department’s oversight of the Federal Reserve by drawing on elements of the Bank of England’s model, a move that would upend the relationship between the Fed and the government. At present, Trump has launched an unprecedented attack on the world’s most important central bank.

Responding to this news, Mnuchin lambasted the Financial Times, stating: “This is a complete fabrication, the FT has devolved into a gossip rag for market participants. Despite my public and explicit denial that I have advocated, discussed, or supported using the charter of the Chancellor of the Exchequer – Bank of England as a blueprint for the Treasury – Federal Reserve relationship, the FT reporters still produced a story titled ‘Mnuchin hails Bank of England as model for strengthening Fed oversight.’ These pathetic reporters clearly fabricated a story intended to give the impression that I and the Trump administration are embarking on ‘remaking that relationship…at a time when President Trump has launched an unprecedented attack on the world’s most important central bank.’ In short, the FT has completely fabricated a complete false policy position for me and this administration. It is truly baffling why they would damage their already tarnished journalistic credibility, beyond further promoting that malicious, false narrative of ‘institutional dysfunction and antagonism.’”