Bessent Says Fed Lacks Accountability, Has Lost Public Trust

Treasury Secretary Scott Bessent told the House Financial Services Committee that the Federal Reserve needs greater accountability and has lost public trust after allowing inflation to soar and overseeing a costly renovation of its headquarters. He said he respected the Fed’s independence but questioned its credibility under current leadership.

Mr. Bessent’s remarks came as President Trump has nominated Kevin M. Warsh for Fed chair and the Justice Department opened a criminal investigation into Chair Jerome H. Powell over the renovation. The Trump administration has also sought to remove a Fed governor, and that case is before the Supreme Court.

When asked whether the president has the authority to fire a Fed governor or chair, Mr. Bessent declined to answer, saying he was “not a lawyer,” though he said the president may express views about monetary policy. The nomination of Mr. Warsh is in limbo after Senator Thom Tillis said he would delay confirmation until the legal inquiry is resolved.

scott bessent, federal reserve, public trust, fed headquarters renovation, inflation, kevin m. warsh, jerome h. powell, justice department, house financial services committee, senator thom tillis