Treasury Secretary Bessent Calls for Fed Review Amid Trump Criticism

Treasury Secretary Scott Bessent has called for a comprehensive review of the Federal Reserve, suggesting the central bank's ability to achieve its mission requires critical examination. In a CNBC interview, Bessent compared the Fed's performance to that of the Federal Aviation Administration, implying that similar scrutiny would be warranted. He later clarified on social media that he specifically advocated for an internal review of the Fed's "non-monetary policy operations."

Bessent's comments come amid increased criticism from President Donald Trump and his administration regarding the Federal Reserve's recent monetary policy decisions. The administration has expressed dissatisfaction with Fed Chair Jerome Powell over the central bank's decision to maintain current interest rates. This tension highlights the ongoing debate about central bank independence and monetary policy direction under the current administration.

Beyond Federal Reserve policy, Bessent addressed trade matters during his interview, noting that the approaching August 1 deadline for tariffs would "put more pressure" on trading partners to finalize agreements. This statement aligns with the administration's broader approach to international trade negotiations and economic policy. The Treasury Secretary's remarks reflect the administration's multi-faceted economic strategy involving both domestic monetary policy and international trade relations.

The article also covered market developments unrelated to politics, including earnings reports from major corporations like General Motors and Coca-Cola, both of which exceeded quarterly expectations. Additionally, it noted significant movement in the stock of Opendoor Technologies, which has experienced a dramatic price increase reminiscent of previous meme stock phenomena, with shares rising over 42% in a single session and more than 500% over the past month.