Bessent backs Fed's independence, but says it has made 'a lot of mistakes'

The Federal Reserve is and should be independent, Treasury Secretary Scott Bessent told _Reuters _in an interview, but noted that the central bank has "made a lot of mistakes."

Bessent also defended President Donald Trump's right to fire Fed Governor Lisa Cook over mortgage fraud allegations. Cook sued to block [https://seekingalpha.com/news/4490075-lisa-cook-sues-trump-administration-over-move-to-oust-her-from-fed-board] Trump's move.

"She hasn't said she didn't do it," Bessent pointed out. "She's just saying the president can't fire her. There's a big difference." He added that Cook should step down if the allegations are true.

When asked if Trump's move to fire Cook looked like an attempt to enable the president to appoint a majority on the Fed board, Bessent said: "Well, or is it you're having to do the Fed's job for 'em?"

Bessent added that the makeup of the Fed board meant that Trump could not "stack the board." The Federal Open Market Committee - which sets monetary policy - consists of the seven Fed governors, the New York Fed's president, and four other Reserve Bank presidents who serve one-year terms on a rotating basis.

Bessent insisted that markets were not impacted by the Trump's moves related to the Fed. "The S&P's at a new high and bond yields are fine. So we haven't seen anything yet."

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