What statutory authority grants Treasury Secretary Scott Bessent the power to demand that the Federal Reserve relinquish its banking supervision responsibilities?

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Scott Bessent has no statutory authority to strip the Federal Reserve of its bank-regulatory powers. Congress created the Fed in 1913 via the Federal Reserve Act (Pub.L. 63-43, ch. 6, §§9,11,13) and vested it with exclusive bank supervision responsibilities Section 9 authorizes the Fed to examine member banks; Section 11 delegates rulemaking on member-bank examinations; Section 13 empowers discount lending to member banks (federalreserve.gov)). The Banking Act of 1935 (Pub.L. 74-305, 49 Stat. 684) shifted additional supervisory functions to the Board of Governors and removed the Treasury secretary from the Fed Board to reinforce separation of powers (federalreservehistory.org)). Dodd-Frank Act of 2010 (H.R. 4173 – Public Law 111-203, July 21 2010) left primary bank-supervision authority with the Fed and FDIC while creating the Financial Stability Oversight Council under the Treasury secretary (congress.gov)). Only Congress can alter this framework through new legislation; executive agencies lack independent authority to restructure the Fed’s statutory mandates.

What statutory authority grants Treasury Secretary Scott Bessent the power to demand that the Federal Reserve relinquish its banking supervision responsibilities?

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