Controversy and Allegations Stir Over Fed Governance

U.S. Treasury Secretary Scott Bessent emphasized the importance of the Federal Reserve's independence but acknowledged missteps during a recent interview. He defended President Trump's right to dismiss Fed Governor Lisa Cook, who faces mortgage fraud allegations that Trump allegedly exploits to control Fed appointments.

Bessent questioned whether the administration's actions aimed to ensure the Fed's job was done effectively, despite turmoil over governor appointments. He dismissed market concerns, citing stable indices amid the controversy. The allegations against Cook remain a flashpoint in a larger dispute over the independence of U.S. financial institutions.

Cook, the first Black woman on the Federal Reserve Board, denies the basis for her removal, arguing that President Trump's dismissal lacked legal authority. Bessent pressed for an independent review, asserting that even unconfirmed allegations necessitate consideration. As legal battles proceed, Bessent urged the Senate to confirm Stephen Miran for a temporary board position.