Treasury Secretary Scott Bessent Urges Revamp of Federal Reserve

WASHINGTON, October 30, 2025 — U.S. Treasury Secretary Scott Bessent has praised the Federal Reserve’s recent quarter-point interest rate cut but sharply criticized the central bank for its cautious tone regarding future cuts, describing the institution as “stuck in the past” and calling for a complete leadership overhaul.

Speaking to Fox Business Channel’s Mornings with Maria, Bessent highlighted his plans to conduct a second round of interviews for candidates to replace Fed Chair Jerome Powell in early December, enabling President Donald Trump to appoint a new Fed leader before Christmas.

“The decision by the Federal Reserve yesterday — the decision to cut rates by 25 basis points, I applaud, but the language that went with it tells me this Fed is stuck in the past. Their inflation estimates have been terrible so far this year. Their models are broken,” Bessent said.

Criticism of Fed Forecasting and Caution on December Cut

Bessent questioned the Fed’s reluctance to signal another rate cut at the December meeting, arguing that its estimates of gross domestic product (GDP) and inflation have been consistently inaccurate. He emphasized that a new Fed leader would revamp the institution’s processes and internal operations, aiming for more accurate forecasting and proactive monetary policy.

Powell, responding to questions on Wednesday, noted that a policy divide within the Fed and the lack of official economic data during the federal government shutdown could limit the feasibility of further rate reductions this year. Wednesday’s rate cut was intended to support the job market amid ongoing economic uncertainty.

Prospective Fed Chair Candidates

Bessent previously identified five finalists to succeed Powell when his term ends in May 2026:

• Kevin Hassett, White House Economic Adviser
• Kevin Warsh, former Fed Governor
• Christopher Waller, current Fed Governor
• Michelle Bowman, Fed Vice Chair for Supervision
• Rick Rieder, BlackRock executive

Bessent’s remarks underscore the Trump administration’s continued scrutiny of Fed policy and the potential for a significant leadership shift at the U.S. central bank.