President Trump’s Treasury Secretary Scott Bessent wrote an op-ed for International Economy titled, “The Fed’s New ‘Gain-of-Function’ Monetary Policy.” The article places much of the blame for America’s current income inequality challenge at the foot of the Federal Reserve, which Trump has added to the list of powerful institutions he has targeted for disruption.
[NOTE: Trump recently attempted to remove Lisa Cook from her Fed Governor position, a firing it is unclear he has the authority to enact. U.S. District Judge Jia Cobb this week granted Cook’s request for a preliminary injunction blocking her dismissal, allowing Cook to stay in her job pending the results of her lawsuit against the President.]
Bessent, the former currency trader who made part of his fortune working for billionaire financier George Soros, shared a link to his article on X and wrote: “The Federal Reserve is among the foremost drivers of inequality in America. By failing to deliver on its inflation mandate, the Fed allowed class and generational disparities to grow worse, expanding the divide between asset-owners and lower-income Americans. The Fed must regain its independence and stop serving the wealthy at the expense of everyone else.”
The Federal Reserve is among the foremost drivers of inequality in America.
By failing to deliver on its inflation mandate, the Fed allowed class and generational disparities to grow worse, expanding the divide between asset-owners and lower-income Americans.
The Fed must… https://t.co/x2udLyQPD7
— Treasury Secretary Scott Bessent (@SecScottBessent) September 9, 2025
Billionaire Mark Cuban, a Republican who campaigned for Vice President Kamala Harris in 2024, replied to Bessent, presenting health insurance — not interest rates — as a more significant driver of financial stress and inequality.
Cuban wrote: “With all due respect, there is Nothing The Fed can do to overcome the Healthcare Insurance Tax every individual and company paying for insurance faces.
“A Family of 5, making 125k per yr pays an effective federal income tax of 3.3%.
“Their insurance $9600 per yr WITH taxpayer subsidies. PLUS $19,200 ANNUAL out of pocket Max. No subsidies and their premiums go up to 25k per yr. Plus 19.2k OOP max.
The result, Cuban writes, “can be 10x their fed inc tax. It’s horrific for so many families This is why homes are unaffordable. This is why Tariffs hurt more. This is why companies have a hard time giving raises and retaining employees. This is why medical debt causes more bankruptcies.”
Cuban, who with his Cost Plus Drugs company has sought to disrupt the prescription medication sector, added: “Mr Secretary, the big insurance companies DICTATE THE FLOW OF FUNDS FOR A 5 TRILLION DOLLAR INDUSTRY. They determine the flow of patients to providers. The prices paid to doctors and hospitals. The flow of medications and the prices paid. They determine who can afford care via deductibles and OOP max, knowing if patients can’t afford their deductible, the premiums paid go right into their bank accounts. Which is more important to a family trying to buy a home, a .5 or 1 pct interest rate reduction or their insurance going up $1500 dollars per month because subsidies disappear ? Or facing a 19k out of pocket risk ? It’s all fixable.”
With all due respect, there is Nothing The Fed can do to overcome the Healthcare Insurance Tax every individual and company paying for insurance faces.
A Family of 5, making 125k per yr pays an effective federal income tax of 3.3%.
Their insurance $9600 per yr WITH taxpayer… https://t.co/Nh1YXxWPAV
— Mark Cuban (@mcuban) September 10, 2025
When one X user asked Cuban, “Mark – Could we introduce a federal policy that caps what % of income can go to healthcare premiums. At the same time cap what insurers can charge on certain things?” Cuban replied: “They already do that for the ACA. But it’s about to expire.”
Note: One of the key features of ACA is premium caps, which limit the amount of income you’re required to pay towards your health insurance costs. During the pandemic, Congress boosted the premium tax credit through 2025, which made Marketplace health insurance more affordable.
Trump’s new 2025 tax bill did not extend the enhanced tax break, which, according to the health policy organization KFF could raise Affordable Care Act premiums for more than 22 million enrollees if no action is taken. Trump’s bill also eliminated the repayment cap, effective in 2026, regardless of income. 2025 is the last year that a repayment cap still applies.