Treasury Secretary Scott Bessent sharply criticized The Financial Times for what he called an 'explicitly false' article claiming he favors modeling US oversight of the Federal Reserve on the Bank of England. In a detailed post on X, Bessent denied ever advocating such a change and accused the outlet of fabrication. He reiterated his actual views on reforming the Fed to address institutional bloat and nonstandard policies.
Treasury Secretary Scott Bessent issued a strong rebuke against The Financial Times on X, labeling a recent story about his Federal Reserve reform ideas as 'explicitly false' and the outlet 'tabloid trash' for market participants. The FT article, headlined 'Scott Bessent praised Bank of England as model for tighter oversight of Federal Reserve,' suggested Bessent supported adopting elements of the UK model, including tighter Treasury oversight akin to the Chancellor-Bank of England relationship. An accompanying X post from FT stated that Bessent discussed 'tightening the US Treasury’s oversight of the Federal Reserve by adopting elements of the Bank of England’s model.' Bessent, who in 2025 published a more than 6,000-word analysis on potential Fed reforms, insisted he had never advocated, explored, or espoused this idea. 'Despite my direct, on-the-record denial,' he wrote, 'FT journalists manufactured a story.' He noted that over the past decade, he has written more than 20,000 words on Fed decisions, personnel, structure, and modifications without mentioning the notion. Bessent dismissed the Governor’s letters to the Chancellor as a 'useless and perfunctory device' and said recreating the Bank of England's framework in the US has 'never been contemplated.' He charged that the story, based on anonymous 'financial industry executives,' aimed to portray discord in the Trump administration amid claims of an 'unprecedented assault' on the central bank. Instead, Bessent's reform arguments focus on curbing 'institutional bloat' and the 'overuse of nonstandard policies.' Drawing parallels to the Covid pandemic and post-2008 crisis tools, he warned that such 'extraordinary' measures have transformed the Fed's regime with 'unpredictable consequences.' Bessent concluded by criticizing FT's 'meretriciousness' and damage to its parent, Nikkei Inc.
