Scott Bessent: Fed Losing $1B a Year, Needs Accountability
Treasury Secretary Scott Bessent says the Trump administration’s campaign to root out waste, fraud, and abuse has expanded to the Federal Reserve, where potential ethics violations by multiple senior officials are now under review.
Appearing last week on Newsmax’s “Rob Schmitt Tonight,” Bessent criticized the central bank’s financial performance and lack of accountability while discussing an investigation involving Federal Reserve Chair Jerome Powell. “The Fed is now losing $100 billion a year – $100 billion with no accountability,” Bessent said. “We had the worst inflation in 49 years.
“And we’ll see what the tally ends up being, but a very good chance that we will have had ethics violations over the past — four to six of the regional presidents or governors.
“And there needs to be some accountability.”
Bessent contrasted the Fed’s structure with that of the presidency, arguing that while the Federal Reserve prides itself on independence, it operates without the same checks applied to elected officials. He suggested that unelected officials wield enormous power over monetary policy without sufficient oversight, even as they control money creation and interest rates.
“The Federal Reserve occupies a unique spot in the American governmental process,” Bessent told Schmitt last Wednesday. “They have no supervision, they have no accountability.
“And I think that we will look at this and think of a couple of things on Chair Powell’s watch.”
Bessent continued his criticism during appearances on Sunday talk shows, again warning about what he described as a lack of restraint and transparency at the central bank.
“Of course, he’s committed to the independence of the Federal Reserve, but independence does not mean no oversight,” Bessent said on NBC News’ “Meet the Press,” referring to President Donald Trump’s pressure on Powell to lower interest rates.
During the interview, host Kristen Welker attempted to draw a comparison between construction work at the White House and renovation costs at the Federal Reserve, a comparison Bessent rejected outright.
“The renovations at the White House are not $700 million, more than $1 billion or $1.5 billion over budget, Kristen, and the White House, that is being paid for with private funds,” Bessent responded.
He went on to argue that the Fed’s financial autonomy demands greater transparency. “If I want to buy a new chair for my office at Treasury, that is an appropriation. Just to understand, the Federal Reserve has magic money. They print their own money. So when you have no oversight, why not have a little sunlight?
“Kristen, I have called since last summer for the Fed to do its own internal investigation. And that has not been heeded, not been heeded.
“And again, I don’t know about you. If I were to receive inquiries from the Justice Department, I would answer them. They went unanswered.”
{Matzav.com}