Treasury Secretary Bessent Calls for Federal Reserve Review Amid Trump's Criticisms

U.S. Treasury Secretary Scott Bessent has called for a comprehensive review of the Federal Reserve as an institution, highlighting concerns over its effectiveness. In an interview with CNBC, Bessent refrained from commenting on reports suggesting he advised President Trump against firing Fed Chair Jerome Powell.

President Trump has been openly critical of Powell, particularly over the Fed's reluctance to cut interest rates and a costly renovation at its Washington headquarters. Trump suggested potential fraud as a reason for the project surpassing its $2.5 billion budget, which could justify Powell's removal.

Bessent pointed out that Powell's current term as Fed Chair concludes in May 2026, with another governor seat becoming available in January 2028. He noted that whether financial markets might crash if Powell is ousted remains speculative at this point.

(With inputs from agencies.)