Treasury Secretary Scott Bessent asserts that Federal Reserve Chair Jerome Powell does not need to resign, despite calling for a review of the central bank’s operations. President Trump has expressed a desire for Powell to step down, but Powell has not indicated any plans to do so.

Bessent emphasized the importance of an internal review of Fed operations, separate from political influence, focusing on non-monetary policy functions. He believes that Powell has an opportunity to improve his legacy by addressing these issues.

President Trump has urged the Fed to lower interest rates, but the Federal Open Market Committee is expected to keep rates steady at its upcoming meeting. Fed Governor Michelle Bowman stressed the importance of maintaining independence while also emphasizing transparency and accountability. Markets anticipate a possible rate cut in September.

Read more at CNBC: Bessent says Powell doesn’t need to resign but should conduct internal review