Bessent Calls on Federal Reserve to Surrender Banking Oversight Authority

Treasury Secretary Scott Bessent publicly called on the Federal Reserve to relinquish its bank supervision and regulation functions, arguing those powers should be consolidated under the Treasury Department. Bessent framed the proposal as streamlining oversight, but Fed officials and bipartisan banking experts warned it would give the executive branch direct control over the solvency oversight of the nation's largest banks. The proposal would require congressional action to implement.