Scott Bessent Slams The Federal Reserve For Losing $100 Billion A Year Due To 'Mistimed Asset Purchases' — Calls For Greater 'Accountability'

U.S. Treasury Secretary Scott Bessent criticized the Federal Reserve for respective ethical lapses and argumentation missteps, which helium said person resulted successful losses amounting to respective cardinal dollars a year.

On Tuesday, Bessent said the Federal Reserve was losing $100 cardinal a twelvemonth owed to “mistimed plus purchases,” referring to the operating losses linked to enslaved purchases made during the pandemic and the crisp summation successful involvement rates that followed, during an interrogation with CNBC from Davos.

“I deliberation that was a large mistake,” helium said, portion criticizing respective different ethical oversights astatine the cardinal slope implicit the past fewer years.

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Bessent argued that the Federal Reserve's independency does not exempt it from scrutiny, saying the instauration wields tremendous power implicit Americans' regular lives portion operating with constricted “accountability.”

The cardinal bank, helium said, is “unelected,” “not taxable to appropriations,” and capable to make wealth connected its own, adding that it has entree to what helium described arsenic “magic money,” frankincense making it important for the instauration to beryllium held accountable for its actions.

Bessent highlighted the outgo overruns astatine the Federal Reserve’s office renovation project, saying that the instauration volition conscionable “print much money” to woody with it.

Besides this, helium besides called retired the aggregate resignations by elder officials astatine the Fed successful caller years. He said that “under Chair Powell's watch,” betwixt “four to six governors and presidents” person stepped down implicit ethical issues, calling the concern “not transparent.”

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On Monday, Bessent said that President Donald Trump was “committed” to the independency of the Federal Reserve, portion adding that “independence does not mean nary oversight.”

This comes amid Trump’s Department of Justice threatening the Federal Reserve with a “criminal indictment” implicit its $2.5 cardinal office renovation task and Fed Chair Jerome Powell’s grounds earlier the Senate Banking Committee.

The Federal Reserve did not instantly respond to Benzinga’s petition for a remark connected this. The communicative volition beryllium updated arsenic soon arsenic we person a response.

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