
Treasury Secretary Bessent calls for a review of 'the entire' Federal Reserve
'What we need to do is examine the entire Federal Reserve institution and whether they have been successful,' Bessent said during an interview on CNBC's ' Squawk Box.' 'Has the organization 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 has this happened.'
The comments come amid an intensifying conflict between the White House and the central bank.
Last week saw conflicting reports over whether President Donald Trump was preparing to fire Fed Chair Jerome Powell. Reports from the White House indicated a move was forthcoming, but Trump soon after denied he is readying what would be a legally questionable maneuver.
Bessent has been at the center of the controversy, both as a potential successor at the Fed as well as reports pointing to the Treasury chief as a mediator looking to discourage Trump from ousting Powell.
'President Trump solicits a whole range of opinions and then makes a decision,' Bessent said when asked about a Wall Street Journal report that he had helped convince Trump to stay his hand on Powell. 'So he takes a lot of inputs, and at the end of the day it's his decision.'
Trump has demanded the Fed dramatically lower its benchmark overnight borrowing rate, something that appears unlikely regardless of the chair.
In addition, the administration in recent days has criticized the Fed for cost overruns at the $2.5 billion renovation it has undertaken for two of its buildings in Washington. Administration officials reportedly are planning soon to view the project in person.
On the question of interest rates, Bessent backed the idea that the Fed probably should be easing with inflation mostly moderating.
'They were fear mongering over tariffs, and thus far we have seen very little if any inflation,' Bessent said. 'We've had great inflation numbers. So, you know, I think this idea [is] of them not being able to break out of a certain mindset. All these PhDs over there, I don't know what they do.'
The Fed last cut rates in December, which completed a brief easing cycle that brought the fed funds rate down a full percentage point. However, as the Fed eased both mortgage rates and Treasury yields moved higher.
Market pricing indicates the Fed probably will cut again in September.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Daily Mail
8 minutes ago
- Daily Mail
FBI chief 'shocked to core' amid Epstein files scandal
By Embattled FBI deputy director Dan Bongino revealed he has discovered matters that have 'shocked me down to my core' during his time in office. Bongino shared a cryptic message to his social media in which he vowed to uncover 'the truth' amid mounting criticism of his handling of the Epstein files. He added: 'We cannot run a Republic like this. I'll never be the same after learning what I've learned. 'We are going to conduct these righteous and proper investigations by the book and in accordance with the law. We are going to get the answers WE ALL DESERVE. 'As with any investigation, I cannot predict where it will land, but I can promise you an honest and dignified effort at truth. Not 'my truth,' or 'your truth,' but THE TRUTH.' Bongino alluded in his statement to recent discoveries surrounding government corruption and weaponization. He did not provide a timeline for when the general public might learn about what he is talking about, adding that 'things are happening'. He failed to show up on one Friday after a DOJ memo was released that said Epstein had died by suicide and that no other people named in the files would be charged. It also said there was no 'Epstein client list'. The following Monday, officials were starting to squirm and feared that Bongino would be a no-show yet again, but he arrived in the office a few hours later than expected. It was reported at the time that Trump was furious that one of his hand-picked appointees would be so publicly against him. A source inside the DOJ told Daily Mail that Bongino was ready to stand down if Attorney General Pam Bondi didn't. The fallout of that memo continues, with the Wall Street Journal reporting that Bondi told Trump in May that his name appeared in the Epstein files. Bondi also allegedly acknowledged that the administration should withhold the files due to them containing images of child sexual abuse. The president associated with Epstein and British socialite Ghislaine Maxwell in the 1980s and 1990s. Maxwell was questioned this week by Deputy Attorney General Todd Blanche. She is serving 20 years behind bars for his involvement in Epstein's crimes. The 63-year-old made it clear earlier this month that she was willing to speak in front of Congress about the case. Trump has not been implicated in any crimes and just because a name appears in the files does not mean imply they were involved in Epstein's child sex trafficking. Many believe Maxwell appears to be angling for a pardon from President Donald Trump after she 'didn't hold back' during questioning. Trump refused to rule out invoking his presidential pardon powers for Maxwell saying: 'I'm allowed to do it, but it's something I haven't thought about.'


BBC News
an hour ago
- BBC News
Trump calls on Thailand and Cambodia to cease fire and talk trade
Donald Trump said on Saturday he had held talks with the leaders of Cambodia and Thailand, as the two countries sought an "immediate ceasefire" following border the beginning of a private visit to his Scottish golf courses, the US president wrote on Truth Social that both nations "have agreed to immediately meet and quickly work out a Ceasefire and, ultimately, PEACE!".He added that he looked forward to resuming trade talks with Cambodia and Thailand though it wasn't appropriate to hold such discussions until the "fighting STOPS".At least 33 soldiers and civilians have been killed while thousands of Thai and Cambodian nationals have been displaced since fighting broke out on 24 July. Trump's intervention emerged a week before US tariffs on Cambodia and Thailand are due to come into force. From 1 August, businesses in the US shipping in goods from Thailand or Cambodia will have to pay a 36% tax unless an agreement can be reached before then. Earlier on Saturday, Cambodia had already called for "immediate" ceasefire with Sangiampongsa, Thailand's foreign minister, said its neighbour needed to show "genuine sincerity in ending the conflict" for talks to teeing off at his luxury resort Trump Turnberry in South Ayrshire, the US president said that he had spoken to Cambodian Prime Minister Hun Manet and Thailand's acting Prime Minister, Phumtham Wechayachai."When all is done, and peace is at hand, I look forward to concluding our Trading Agreements with both!" Trump wrote.


Times
an hour ago
- Times
Trump's visit prompts political posturing and diplomatic duty
I t is doubtless Scotland's misfortune that the keenest presidential golfer since Gerald Ford is also an American president whose golfing interests extend to owning resorts in the land that gave the game to the world. If it weren't for golf, President Trump would not be visiting Scotland this weekend, or spending as many as four days here. But this is also the land of his mother and although Trump's visit is notionally a private one — to open a new course at his Aberdeenshire property — there is, in truth, no such thing when Air Force One comes to town. When the president of the United States demands a meeting, everyone's diaries are cleared. If that means extra duties for most of the police officers in Scotland, so be it.