United States Treasury Secretary Scott Bessent called for a review of the Federal Reserve to look at its overall function in an interview with CNBC.
In the interview, Bessent said the entire institution of the Federal Reserve needed to be examined.
“Has the organisation succeeded in its mission? If this were the [Federal Aviation Administration] and we were having this many mistakes, we would go back and look at why this has happened,” he told CNBC’s Squawk Box.
The comments were made amid intensifying conflict between the White House and the central bank, with President Donald Trump sharply criticising Fed chair Jay Powell for putting off borrowing cuts and considering firing him.
Bessent even doubled down on these calls on X.
He said he believed the Fed should conduct an exhaustive internal review of its non-monetary operations.
“The Fed does regular reviews of its monetary policy framework,” he posted.
“I would urge Fed leadership to similarly undertake, publish and implement a comprehensive institutional review across its entire mission to buttress its credibility.”
The Trump administration has also recently opened a new front for its campaign against the Fed, with the president's budget director Russell Vought saying that the US$2.5 billion renovation of the central bank’s headquarters has been grossly mismanaged.
There is a review underway by the Fed general of its headquarters, which involves an overhaul of two buildings that overlook the National Mall and is US$700 million over budget.
The Fed last cut the rate in December, bringing the Fed funds rate down by a full percentage point. There are hopes that the Fed will cut again in September this year.
