
Bessent Describes Federal Reserve Independence as a Political Arrangement Following Trump’s Move to Dismiss Fed Board Member
U.S. Treasury Secretary Scott Bessent on Tuesday described the Federal Reserve’s independence as a “political arrangement,” one day after President Donald Trump announced plans to dismiss Fed board member Lisa Cook amid allegations of mortgage fraud. Speaking during a Cabinet meeting at the White House, Bessent praised the President’s actions, framing them as part of a broader effort to restore public confidence in U.S. institutions. “You have the overwhelming mandate from the American people. You’re restoring confidence in government,” Bessent told Trump. Referring to growing public scrutiny of the central bank, Bessent remarked, “The Federal Reserve is on the front of everyone’s mind.” He went on to assert that the Fed’s credibility stems not solely from its structural independence, but from the trust it commands among the American public. “The Federal Reserve’s independence comes from a political arrangement between itself and the American public,” Bessent said. “Having the public’s trust is the only thing that gives it credibility, and you, sir, are restoring trust to government.” Bessent did not directly name Lisa Cook, the Fed board member whom Trump said he was removing late Monday, citing unverified allegations of mortgage fraud. The unprecedented move has drawn sharp criticism from legal scholars and economists, who warn that it could severely undermine the Fed’s perceived independence from political influence. Critics argue that the dismissal—if carried out—may face constitutional challenges, as members of the Federal Reserve Board are protected by statutory terms and can only be removed under specific legal conditions. The White House has yet to provide additional details regarding the allegations against Cook or the legal justification for the President’s decision. This story is developing.