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4w ago

Bessent Urges Stripping Fed of Bank Oversight, Calls for Independent Review

Powell says only Congress can alter the Fed’s mandate or structure.

U.S. Treasury Secretary Scott Bessent sits to testify before a House Ways and Means Committee hearing on Capitol Hill in Washington, D.C., U.S., June 11, 2025. REUTERS/Elizabeth Frantz/File Photo
Treasury Secretary Scott Bessent attends a press conference after trade talks between the US and China in Stockholm on July 29, 2025.
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Overview

  • In a Wall Street Journal essay on Sept. 5, Treasury Secretary Scott Bessent urged removing the Fed’s bank‑supervision role and shifting oversight to the FDIC and OCC.
  • He called for an honest, independent, nonpartisan review of the institution, arguing the Fed has expanded beyond its statutory mandate.
  • Bessent said unconventional tools such as quantitative easing should be used only in true emergencies in coordination with the federal government.
  • Fed Chair Jerome Powell has stated that only Congress can change the central bank’s structure, and it is not yet clear who would conduct any external review.
  • Bank supervision is currently shared with the FDIC and OCC, and Vice Chair for Supervision Michelle Bowman is conducting a review of large‑bank capital requirements.