• US Treasury Secretary Scott Bessent has called for a comprehensive review of the Federal Reserve’s non-monetary policy operations and its headquarters renovation plan, arguing that “mission creep” is endangering the central bank’s independence. While joining President Trump in faulting the Fed’s prolonged operations, Bessent was more restrained in her outlook for Fed Chairman Jerome Powell’s destiny, stating there’s “nothing that tells me that he has to resign right away” and that Powell should serve out his term if he desires. That contrasts with President Trump’s repeated public calls for Powell to resign.

• Amid this pressure, Federal Reserve Vice Chair for Supervision Michelle Bowman emphasized the absolute importance of the independence of the central bank in setting monetary policy, while also acknowledging the necessity for transparency and accountability. Her remarks underscore the tension between the Trump administration’s demands for lower interest rates and the Fed’s commitment to its independent mandate.

• And in consumer news, US gasoline prices could fall below $3 a gallon this summer for the first time in over four years. This potential decrease is a result of a combination of weakening fuel demand due to the recent inclement weather and a rise in imports, which have helped to replenish inventories. This prediction offers a potential reprieve to American consumers, who faced record high prices at the pumps following Russia’s invasion of Ukraine in 2022.