Bessent Seeks Fed Review Amid Trump Pressure

U.S. Treasury Secretary Scott Bessent is calling for a comprehensive review of the Federal Reserve's non-monetary operations, citing concerns about 'mandate creep' and threats to the Fed's independence. He has specifically questioned the $2.5 billion headquarters renovation, especially as the Fed faces operating losses and political scrutiny. Bessent is also advocating for a fundamental overhaul of bank capital requirements, arguing that current rules are outdated, overly complex, and harmful to lending by community banks. He promotes simpler, risk-based rules aimed at boosting Main Street lending and economic growth. These actions come amid mounting pressure from President Trump on Fed Chair Jerome Powell regarding interest rate policy and the renovation project. Bessent has underscored the need to protect the Fed's autonomy while pursuing regulatory reforms that support financial stability and credit access.