Catenaa, Wednesday, September 10, 2025- US Treasury Secretary Scott Bessent called for a comprehensive, nonpartisan review of the Federal Reserve, criticizing the central bank for missteps that fueled inflation, widened wealth inequality, and worsened housing affordability.
Bessent’s remarks come as the Trump administration intensifies efforts to influence the Fed and explore leadership changes.
Bessent urged the Fed to scale back bond purchases outside crisis conditions, delegate bank supervision to other authorities, and scrutinize policies on staffing, research, and communications.
He said the Fed must restore credibility as an independent institution focused on its statutory mandate of maximum employment, stable prices, and moderate long-term interest rates.
Hours after Bessent’s comments, President Donald Trump confirmed Bessent was among four candidates under consideration to replace Fed Chair Jerome Powell, whose term ends in May 2026, though Bessent declined interest.
Trump is also evaluating National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh, and current Fed Governor Christopher Waller.
Bessent began interviewing candidates to succeed Powell, while critics note the Fed has faced repeated accusations of partisanship and misuse of funds, from headquarters renovations to regional bank staffing. Trump has moved to remove Fed Governor Lisa Cook over alleged mortgage fraud, which she contests in court.
Analysts say the Fed is likely to reduce rates this month to support a fragile labor market, though deep cuts or a full board overhaul remain uncertain.
Bessent’s call underscores mounting scrutiny over the Fed’s policy independence and effectiveness as US economic conditions face persistent pressures.
