US Treasury Secretary Bessent Calls for Federal Reserve Review Amid Tensions

Treasury Secretary Scott Bessent has called for a comprehensive review of the Federal Reserve, questioning its overall effectiveness and mission success amid growing tensions between the Trump administration and the central bank. While Bessent emphasized the importance of the Federal Reserve's independence in monetary policy decisions, he also suggested examining the institution beyond recent controversies like costly building renovations. President Trump has been critical of Fed Chair Jerome Powell, particularly over the reluctance to lower interest rates and the expensive renovation project, and reportedly considered firing Powell, though Bessent acted as a mediator to dissuade such a move. The Trump administration is also focused on securing high-quality trade agreements rather than rushing to meet tariff deadlines, with Bessent highlighting ongoing negotiations with the EU, Japan, and China, and hinting at coordinated tariff strategies with allies. Despite the pressure, Bessent expressed confidence in the trade discussions and underscored that tariffs can serve political objectives beyond economics. Powell's current term as Fed Chair ends in 2026, and the Treasury Secretary noted that market reactions to his potential removal are speculative at this stage.