Catenaa, Tuesday, July 22, 2025- US Treasury Secretary Scott Bessent warned that the Federal Reserve’s independence on monetary policy is at risk due to what he described as “mandate creep” into non-policy areas.
Bessent in a recent X Post called for a thorough review of the Fed’s non-monetary operations, including its controversial $2.5 billion renovation project on its nearly century-old Washington headquarters, which has exceeded its budget and drawn criticism.
In a statement posted on X, Bessent described the Fed’s monetary policy role as a “jewel box” that must be protected to maintain US economic stability and growth.
He expressed concern that the Fed’s expansion into areas beyond its core mission fuels criticism and threatens its autonomy.
The renovation project was approved in 2017 and involves extensive safety and hazardous material upgrades. Bessent said he had no opinion on the legal grounds for the project but questioned why such costly mistakes were allowed given the expertise at the Fed.
Former President Donald Trump has criticized Fed Chair Jerome Powell over interest rate policies and the renovation’s cost overruns, suggesting Powell’s resignation. A recent Supreme Court ruling affirms that the Fed chair can only be removed “for cause,” limiting presidential power to fire Powell.
Bessent declined to comment on reports he advised Trump against firing Powell and avoided speculating on potential market reactions if Powell were removed. Powell’s chair term ends in May 2026, with a governor seat also opening in January 2026.
