Top Treasury Official Calls Fed Accountable Amid Independence Debate (SECURITIES AND EXCHANGE COMMISSION HEARING, 2026-02-04)

Treasury Secretary Scott Bessent testified Feb 4, 2026, that while the Federal Reserve's independence is vital, it has lost public trust due to inflation and cost overruns at its buildings and climate programs. He argued that all Fed operations beyond monetary policy should be subject to accountability, including oversight of bank charters by the OCC to address conflicts of interest. The remarks followed a DOJ probe into Fed Chair Jay Powell's testimony about renovations to the Fed's Washington headquarters and heightened partisan tension over central bank independence. Powell's term ends in May, with a nominee from former Fed Governor Kevin Warsh expected to succeed him. Democrats sharply criticized Bessent, with Rep. Juan Vargas calling his comments "disappointing" and Rep. Gregory Meeks accusing him of "covering for the president" and urging enhanced OCC scrutiny of World Liberty Financial, the president's company.