US Treasury Secretary Bessent Calls for Federal Reserve Overhaul

U.S. Treasury Secretary Scott Bessent has called for a comprehensive, independent, and nonpartisan review of the Federal Reserve, criticizing the central bank's expanded mission and its influence on the economy. He expressed concerns that the Fed's current role, particularly in bank supervision and bond purchases outside crisis situations, jeopardizes its independence and credibility. Bessent advocates for transferring bank regulatory duties to other government entities like the FDIC and the Office of the Comptroller of the Currency, urging the Fed to focus solely on monetary policy, lender-of-last-resort functions, and macroeconomic surveillance. These calls align with President Trump's administration's push for greater control over the Fed, including efforts to replace Chair Jerome Powell with potential successors such as Kevin Hassett or Christopher Waller. The administration's moves have sparked debate over the Fed's independence amid ongoing discussions about interest rate policies and economic strategy. Bessent's proposals were detailed in a Wall Street Journal op-ed and have been widely covered in major financial news outlets.