Will Scott Bessent Replace Powell as Fed Chair? $2.5B Fed Fallout Sparks Speculation

U.S. Treasury Secretary Scott Bessent has reignited scrutiny of the Federal Reserve, calling for a DEEP review of its operations beyond monetary policy. His sharp critique, voiced on social media platform X, warns that the central bank’s expanding role in non-core functions risks undermining its independence.

The Fed’s autonomy is under threat from persistent 'mandate creep,' Bessent argues, as it ventures into areas outside its Core mission. This comes amid escalating political pressure on the institution, with its monetary policy described as a delicate 'jewel box' critical to economic stability.

Controversy has flared over the Fed’s $2.5 billion headquarters renovation in Washington, D.C.—a project approved in 2017 under President TRUMP but now facing backlash for cost overruns and scope. The debate highlights broader concerns about the Fed’s priorities and their implications for America’s economic future.