22 Jul 2025

US Treasury Secretary Scott Bessent has called for an inquiry into the “entire Federal Reserve institution”

In the latest sign of how top Trump administration officials are cranking up pressure on the central bank. “What we need to do is examine the entire Federal Reserve institution and whether they have been successful,” Bessent told CNBC on Monday. Bessent’s comments come as Donald Trump and his lieutenants have sharply criticised the Fed and its chair Jay Powell for refraining to cut borrowing costs this year. Trump last week asked a group of Republican lawmakers whether he should sack Powell, but later clarified that he had no plans to do so unless he needed to “leave for fraud”. Trump’s government has also recently opened a new front in their campaign against the Fed, with the president’s budget director Russell Vought repeatedly alleging that a $2.5bn renovation of the central bank’s headquarters has been grossly mismanaged. Bessent amped up his criticism of the Fed on Monday, saying that if the Federal Aviation Administration had made as many mistakes, “then we would go back and look at why this has happened”. The Fed inspector general is reviewing the renovation of its headquarters, which involves an overhaul of two buildings that overlook the National Mall and is $700mn over budget. Powell has also written to senior senators to explain how the US central bank is reining in costs. Source: FT

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