Jerome Powell’s Magic Money Machine Is Bleeding Us Dry for $100 Billion a Year: Bessent [WATCH]

Scott Bessent raised sharp criticism of the Federal Reserve during an exchange with television host Rob Schmitt, arguing that the central bank operates without sufficient oversight or accountability and calling for scrutiny of its leadership and internal conduct.

Bessent focused his remarks on the structure of the Federal Reserve and what he described as systemic failures that have occurred during the tenure of Chair Jerome Powell.

He said the Fed occupies a unique position within the federal government that shields it from the checks applied to other powerful institutions.

“The Federal Reserve occupies a unique spot the in the American governmental process,” Bessent said.

“They have no supervision. They have no accountability.”

Bessent pointed to the Federal Reserve’s financial performance as a key example of that lack of oversight, saying the institution is now operating at a massive annual loss without consequences.

“And I think that we will look at this and think that couple of things on chair Powell’s watch, the Fed is now losing $100 billion a year, $100 billion with no accountability,” he said.

This Could Be the Most Important Video Gun Owners Watch All Year

He also cited inflation as a major failure during Powell’s leadership, noting the impact on American households and the broader economy.

“We had the worst inflation in 49 years,” Bessent said.

Beyond financial performance and inflation, Bessent suggested that ethical issues may also be emerging within the Federal Reserve system.

He said there is a strong possibility that multiple officials may have violated ethical standards, warranting further examination.

“And we’ll see what the tally ends up being, but got it very good chance that we will have had ethics violations over the past four to four to six of the regional presidents or governors, and there needs to be some accountability,” Bessent said.

Bessent’s comments framed the issue as one that goes beyond policy disagreements, instead pointing to structural problems and governance concerns within the central bank.

He argued that the combination of massive financial losses, historic inflation, and potential ethics violations highlights the need for formal review.

Schmitt responded by summarizing the implication of Bessent’s remarks, suggesting that the concerns raised point toward a deeper inquiry.

“So it’s an investigation. We’ll leave it at that,” Schmitt said.

WATCH:

The exchange comes as scrutiny of the Federal Reserve has intensified amid lingering inflation pressures, debates over interest rate policy, and past controversies involving trading activity by regional Fed officials.

Critics have increasingly questioned whether the institution’s independence has come at the cost of transparency and accountability.

Bessent’s call for accountability adds to those concerns, signaling growing pressure from conservative economic voices for closer examination of the Fed’s leadership, operations, and ethical standards.