Scrutinizing the Fed: Scott Bessent's Call for Reform

U.S. Treasury Secretary Scott Bessent has called for an extensive review of the Federal Reserve's operations, criticizing its influence on the economy and accusing it of partisanship. Bessent's comments come amid the Trump administration's attempts to exert greater control over the central bank.

Bessent suggests that the Fed should step back from bank supervision duties and reduce its economic distortions, asserting that the Fed's actions have fueled inflation and widened economic disparities. His proposals have sparked discussions about the Fed's independence and its current leadership.

Following Bessent's critique, President Trump has disclosed that Bessent is a potential candidate for replacing Fed Chair Jerome Powell. While Bessent has declined interest, the administration is set to conduct interviews for Fed leadership, as Trump continues to apply pressure for changes within the institution.

(With inputs from agencies.)