Bessent criticizes Fed policy, eyes Powell’s exit in 2026

US Treasury Secretary Scott Bessent criticized the Federal Reserve’s interest rate policy, reiterating his view that two-year Treasury yields are a signal that their benchmark rate is too high.

“The committee seems to be a little off here in their judgment,” Bessent said in an interview on Fox Business Thursday, referring to the Fed’s rate-setting Federal Open Market Committee.

Asked about the Federal Housing Finance Agency (FHFA) director Bill Pulte’s call for Fed Chair Jerome Powell to resign over alleged misinformation tied to the central bank’s building updates, Bessent avoided a direct response.

He said the Fed should curb its spending in line with other federal agencies.

Bessent noted that several candidates could succeed Powell when his term ends in May 2026. However, he declined to comment on whether he might pursue the role, saying he won’t disclose private discussions.

He also expressed hope that Powell will leave the Fed entirely in May, although Powell can legally remain on the board until 2028.