Scott Bessent urges Fed self-audit, questions $100 billion losses, expanding role
'However, this autonomy is threatened by persistent mandate creep into areas beyond its core mission, provoking justifiable criticism that unnecessarily casts a cloud over the Fed's valuable independence on monetary policy.'While reiterating that he had 'no knowledge or opinion on the legal basis' of the Federal Reserve's controversial multibillion-dollar renovation project at its Constitution Avenue headquarters, Bessent said such decisions warrant scrutiny, especially from an institution currently reporting annual operating losses exceeding $100 billion.In recent days, White House and administration officials have accused Powell of mismanaging a $2.5 billion renovation project at the Fed, adding to months of efforts by Trump try to rid himself of the politically independent central banker.'A review of the decision to undertake such a project by an institution reporting operating losses of more than $100 billion per year should be conducted,' Bessent said.He called on Fed leadership to go beyond the regular review of its monetary policy framework and undertake a 'comprehensive institutional review across its entire mission.''It will go a long way towards strengthening the Fed's credibility with the American people on its core mission of guiding our nation's monetary policy,' Bessent said.The comments come amid escalating tensions between the White House and the Federal Reserve. Last week, conflicting reports surfaced over whether President Donald Trump was planning to fire Fed Chair Jerome Powell. While some White House sources signalled that such a move was in motion, Trump later denied any immediate plans, reports CNBS.Trump last Wednesday said that he was 'highly unlikely' to fire Federal Reserve Chair Jerome Powell, a public statement made less than 24 hours after suggesting in a private meeting that he was leaning in favour of dismissing the head of the nation's central bank.Trump later confirmed that in a White House meeting with about a dozen House Republicans he had discussed the 'concept' of dismissing Powell, long a target because of his refusal to lower interest rates as Trump wants.- Ends
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