Federal Reserve should be independent but has ‘made a lot of mistakes,’ Bessent says

Treasury Secretary Scott Bessent on Federal Reserve Independence

During an interview on Monday, Treasury Secretary Scott Bessent expressed his views on the independence of the Federal Reserve, stating that while it should be independent, he believes they have made mistakes. He also defended President Trump’s decision to fire Fed Governor Lisa Cook over allegations of mortgage fraud.

President Trump has been vocal in his criticism of the Fed and its chair, Jerome Powell, particularly regarding interest rate policies and the renovation of the bank’s headquarters in Washington.

Bessent emphasized the importance of an independent central bank for a stable global financial system. He also addressed concerns about the administration’s motives in removing Cook, stating that the president cannot “stack the board” due to the makeup of the Fed board.

In response to market concerns, Bessent stated that the S&P was at a new high and bond yields were stable, indicating that the administration’s actions have not negatively impacted the markets.

Regarding the allegations against Cook, Bessent suggested that she should step down if they are true, as she has not denied them. Cook and her supporters believe that the fraud allegations are a pretext to remove her and appoint a more favorable candidate to the central bank.

Despite the controversy surrounding Cook’s dismissal, Bessent urged the Senate to swiftly confirm Stephen Miran as a temporary replacement for a vacant position within the White House Council of Economic Advisers.