Powell Is 'Politicizing the Fed,' Bessent Says

Summary

US Treasury Secretary Scott Bessent criticized Federal Reserve Chair Jerome Powell for supporting Governor Lisa Cook despite unproven mortgage fraud allegations. Bessent said Powell is politicizing the Fed and that the Fed has refused an internal investigation. He also raised questions about presidential removal authority and noted several Fed officials have resigned under Powell for ethical lapses. The remarks are political and governance-focused, with no explicit market or trading recommendations.

• Bessent says Powell is politicizing the Fed by backing Lisa Cook.
• Bessent questions why the Fed has not conducted an internal investigation into Cook.
• Two issues at stake: presidential removal authority and whether Cook committed mortgage fraud.
• Bessent says 4-6 Fed governors and bank presidents stepped down for ethical lapses under Powell.
• Bessent compares the pattern to a Wall Street failure-to-supervise problem.
• Bessent spoke as a political appointee at the World Economic Forum in Davos.
• No explicit asset, security, or market trade recommendations were made.