US Treasury Secretary: Fed must stay independent but has made mistakes

US Treasury Secretary Scott Bessent

US Treasury Secretary Scott Bessent said the Federal Reserve is independent and should remain so, but argued it has made many mistakes, dismissing the notion that markets are unsettled by actions taken under Donald Trump’s administration.

"(The) S&P's at a new high and bond yields are fine. So we haven't seen anything yet,” Bessent told Reuters in an interview on Monday.

He also defended Trump’s decision to dismiss Fed Governor Lisa Cook over alleged mortgage fraud, saying, “I've been very surprised that the Fed has not done an independent review.”

“She hasn't said she didn't do it. She's just saying the president can't fire her. There's a big difference,” he added.

Bessent added that the Senate should move quickly to confirm Stephen Miran, chair of the White House Council of Economic Advisers, as an interim replacement for Adriana Kugler, who resigned on Aug. 1.