Bessent calls for Fed review after Lisa Cook incident

Treasury Secretary Scott Bessent repeated his call for Federal Reserve Chair Jerome Powell to conduct an internal review of the central bank, and referred to mortgage-fraud allegations about Fed board member Lisa Cook as the type of thing that should be included.

“I’ve encouraged Chair Powell to do this on an internal basis before there is an external review,” Bessent said in an interview with Fox Business on Wednesday. “This is the kind of thing that needs to be addressed,” Bessent said.

President Donald Trump moved on Monday to oust Cook from her position as governor after the administration alleged she had engaged in mortgage fraud. Cook’s lawyer plans to file a lawsuit over the maneuver.

Regarding whether Cook's removal was intended to enable Trump to secure a majority of nominees on the Federal Reserve Board, Bessent said, "All members of the Federal Reserve have sufficient independence to make appropriate decisions."

Bessent added that the process of selecting a successor to Powell, whose term ends in May, is still ongoing. He explained that he will conduct interviews with candidates after the Labor Day holiday, and that three to four names will be presented to Trump, with the final nominee to be announced in the fall.