US Treasury chief Bessent calls for Fed 'internal review'
WASHINGTON
U.S. Treasury Secretary Scott Bessent has for the Federal Reserve to conduct an "exhaustive internal review of its non-monetary policy operations.”
In a lengthy post on X, Bessent sought to clarify remarks he made in a CNBC interview earlier on July 21, in which he said "what we need to do is examine the entire Federal Reserve institution and whether they have been successful."
The remark came in response to being asked about firing Fed Chair Jerome Powell, whom President Donald Trump has repeatedly attacked in recent weeks for not cutting interest rates.
The White House has said that Trump has no plans to fire Powell ahead of his term's end in May 2026.
However, Trump and other Republican allies have recently zoomed in on the Fed's $2.5 billion headquarters renovation project as a possible avenue for his ousting.
Bessent, in his post on X, said that the Fed's "independence is a cornerstone of continued U.S. economic growth and stability."
"However, this autonomy is threatened by persistent mandate creep into areas beyond its core mission," he said, without specifying which policy areas.
He called for a review of the over-budget renovation project, while noting he has "no knowledge or opinion on the legal basis for the massive building renovations."
Bessent did not comment on July 21 on a Wall Street Journal report over the weekend that he had privately set out his case to Trump for why the president should not try to fire Powell.
The Journal reported that Bessent's reasons focused on issues including effects on the economy and markets, alongside the likely political and legal obstacles Trump would encounter.
