US Treasury Secretary Bessent Calls for Federal Reserve Institutional Review Amid Trump Criticism

U.S. Treasury Secretary Scott Bessent has called for a comprehensive review of the Federal Reserve to assess whether the institution has been successful in fulfilling its mission. This comes amid heightened tensions between President Donald Trump and Fed Chair Jerome Powell, particularly over the Fed's reluctance to cut interest rates, which Trump has publicly criticized. Bessent highlighted concerns about the Federal Reserve's management, including a $2.5 billion renovation of its headquarters that is significantly over budget, and suggested that if the Federal Aviation Administration had made similar mistakes, a review would be warranted. He emphasized the need to closely examine the Fed’s role as the U.S. economy appears poised for growth potentially driven by advances in AI and technology, which might not trigger inflation. While Bessent refrained from explicitly endorsing firing Powell, he stressed that the entire Federal Reserve system should be scrutinized given the economic stakes and the central bank's cautious monetary policy stance. The Fed inspector general is already reviewing the renovation project, and Fed officials have communicated efforts to control costs amid this scrutiny.