Treasury Secretary Scott Bessent recently reiterated President Donald Trump's unwavering commitment to the Federal Reserve's autonomy, even as a Department of Justice (DOJ) inquiry into the central bank's building expenditures continues. Bessent underscored that while the Fed should remain independent, this does not exempt it from proper scrutiny, particularly given its singular power to influence the nation's currency.
Treasury Secretary Clarifies Stance on Federal Reserve's Autonomy and Accountability
On January 19, 2026, during an appearance on NBC News’ “Meet The Press,” Treasury Secretary Scott Bessent addressed the ongoing debate surrounding the Federal Reserve's independence. Bessent affirmed that President Donald Trump fully supports the Fed's autonomy, yet he stressed that this independence should not be misconstrued as a shield against oversight. He highlighted the unique financial capabilities of the central bank, noting its power to "print its own money," which, in his view, necessitates a higher degree of accountability.
Bessent further disclosed that he had, since the previous summer, urged the Federal Reserve to conduct its own internal review regarding the alleged budget overruns at its Washington, D.C. headquarters, a request he claims was disregarded. He also criticized the institution for not responding to the DOJ's inquiries, stating that he would readily comply if faced with similar requests. When confronted with an Axios report suggesting he privately voiced concerns to Trump about the probe's market impact, Bessent pointed to market reactions—a rising stock market and falling bond yields—as evidence that his actions were not detrimental. He concluded that market sentiment serves as the ultimate arbiter of the Fed's perceived independence, asserting that increased transparency does not equate to coercion.
Conversely, the DOJ's investigation has drawn significant criticism from prominent economic figures. Former Fed Chairs Ben Bernanke, Alan Greenspan, and Janet Yellen, among others, have rallied behind current Fed Chair Jerome Powell, with Yellen notably describing the probe as "extremely chilling" for the central bank's independence. International financial leaders have also expressed solidarity, with European Central Bank President Christine Lagarde vocalizing support for the Federal Reserve System and its Chair on behalf of twelve central banks. Economist Justin Wolfers characterized the administration's actions as "unprecedented," likening them to the conduct of "tin-pot dictators" and warning of potential negative repercussions.
The discourse surrounding the Federal Reserve's independence and accountability is crucial for maintaining trust in financial institutions. While autonomy is vital for effective monetary policy, it must be balanced with transparency and oversight to ensure public confidence and prevent potential misuse of power. The current debate highlights the delicate equilibrium between preserving institutional independence and upholding democratic principles of accountability, a balance essential for the health of both the economy and governance.