U.S. Treasury Secretary Calls for Scrutiny of Federal Reserve

(Reuters) – U.S. Treasury Secretary Scott Bessent on Friday called for renewed scrutiny of the Federal Reserve, including its power to set interest rates. This comes as the Trump administration continues its efforts to exert control over a central bank widely recognized for its independence from short-term political pressures, a key aspect of its effectiveness.

Bessent emphasized the need for an “honest, independent, nonpartisan review” of the entire institution. This review should encompass monetary policy, regulation, communications, staffing, and research. He urged that the Fed should relinquish bank supervision to other governmental authorities and urged it to “scale back the distortions it causes in the economy,” particularly through bond purchases made outside of legitimate crisis conditions.