Treasury Secretary Bessent Calls for a Review of 'the entire' Federal Reserve

by Jeff Cox at CNBC

Key Points

In a CNBC interview, Treasury Secretary Scott Bessent suggested a review of the Federal Reserve that would go beyond the current controversy over building renovations and look at its overall function.
The comments come amid an intensifying conflict between the White House and the central bank.
Bessent backed the idea that the Fed probably should be easing with inflation mostly moderating.

Treasury Secretary Scott Bessent on Monday suggested a review of the Federal Reserve that would go beyond the current controversy over building renovations and look at its overall function.

“What we need to do is examine the entire Federal Reserve institution and whether they have been successful,” Bessent said during an interview on CNBC’s “Squawk Box.” “Has the organization succeeded in its mission? If this were the [Federal Aviation Administration] and we were having this many mistakes, we would go back and look at why has this happened.”

The comments come amid an intensifying conflict between the White House and the central bank. It was not clear what form a review would take or who would perform it.

Last week saw conflicting reports over whether President Donald Trump was preparing to fire Fed Chair Jerome Powell. Reports from the White House indicated a move was forthcoming, but Trump soon after denied he is readying what would be a legally questionable maneuver.

Bessent has been at the center of the controversy,…