Bessent Says Review of Fed’s Building Renovations Is Needed

ZoeySci/Tech2025-07-224520

(Bloomberg) -- Treasury Secretary Scott Bessent said in a social media post Monday that there should be a review of the decision to renovate parts of the Federal Reserve headquarters in Washington.

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“While I have no knowledge or opinion on the legal basis for the massive building renovations being undertaken on Constitution Avenue, a review of the decision to undertake such a project by an institution reporting operating losses of more than $100 billion per year should be conducted,” Bessent said in a post on X, formerly known as Twitter.

Bessent also said the Fed should conduct “an exhaustive internal review of its non-monetary policy operations,” adding that “significant mission creep and institutional growth have taken the Fed into areas that potentially jeopardize the independence of its core monetary policy mission.”

“The Fed does regular reviews of its monetary policy framework,” he said. “I would urge Fed leadership to similarly undertake, publish and implement a comprehensive institutional review across its entire mission to buttress its credibility.”

The Treasury chief also said, “the Fed’s conduct of monetary policy ‘is a jewel box’ that should be walled off to preserve its independence,” and that the Fed’s independence “is a cornerstone of continued US economic growth and stability.”

The Fed and its leader, Chair Jerome Powell, have faced relentless criticism from the Trump administration for weeks, mostly over decisions to hold interest rates steady so far in 2025. Most Fed officials have said they are waiting to gauge the impact of tariffs on inflation before moving ahead with additional rate cuts — which they expect later this year.

Bessent’s post follows his earlier comments on CNBC in which he said the administration should “examine the entire Federal Reserve institution and whether they have been successful.”