Bessent Demands Fed Overhaul, Calls for Full Review of Fed’s Mission

Treasury Secretary Scott Bessent called for a sweeping institutional review of the Federal Reserve on Monday, according to Politico. Bessent's comments increase pressure on Chair Jerome Powell ahead of next week’s rate-setting meeting. In a CNBC interview, Bessent likened the Fed’s performance to a safety agency with recurring failures, questioning whether its members can adapt their thinking. Bessent claimed inflation has remained low and criticized the institution’s rigid thinking and academic leadership. Later on X, Bessent urged the Federal Reserve to conduct a comprehensive institutional review, questioning the prudence of major building renovations amid $100 billion in annual losses. Powell has kept rates steady this year, arguing the Fed should wait to assess the impact of tariffs, which could raise prices while slowing growth. June’s Consumer Price Index showed early signs of tariff-related inflation, though annual inflation remains under 3%.