Treasury Secretary Scott Bessent on Wednesday reiterated his call to review the Federal Reserve as an institution just days after President Donald Trump fired Governor Lisa Cook over allegations of mortgage fraud.
“I’ve encouraged Chair Powell to do this on an internal basis before there is an external review,” Bessent told Fox Business on Wednesday. “This is the kind of thing that needs to be addressed,” he said, referring to Cook’s situation.
In a letter posted on social media Monday, Trump said he has determined there is enough cause to fire Cook, who was appointed to the Fed’s Board of Governors in 2022 by former President Joe Biden. Trump said “I do not have such confidence in your integrity.” The Justice Department has said it plans to investigate the allegations of mortgage fraud, first raised by Federal Housing Finance Agency Director Bill Pulte, but so far, Cook has not been charged with any wrongdoing.
“We haven’t heard her say ‘I didn’t do it,’ — she just keeps saying, the president can’t remove her,” Bessent said. “The Fed is an unaccountable institution, and its relationship with the American people depends on a high level of trust, and incidents like this puncture that trust.”
By law, the Fed is accountable to Congress, and the Fed chair updates congressional lawmakers twice a year through a hearing on the central bank’s actions and economic outlook.
Bessent has previously called for a review of the Fed. It’s unclear what that would entail specifically — whether it would include an audit or a review of the central bank’s policy decisions.