President Donald Trump is warning that America’s financial future is at risk as his administration intensifies its crackdown on waste, fraud, and abuse across the federal government — including the powerful Federal Reserve.
Treasury Secretary Scott Bessent revealed that federal investigators are now examining massive losses at the Federal Reserve and potential ethics concerns involving multiple senior officials.
Speaking last week on Rob Schmitt Tonight, Bessent said the central bank is currently operating at staggering losses with little public accountability.
“The Federal Reserve is losing about $100 billion a year — $100 billion with no accountability,” Bessent said. “We just lived through the worst inflation in nearly 50 years.”
Bessent explained that preliminary findings suggest several regional Federal Reserve presidents or governors may have violated ethics standards during that period. While reviews are ongoing, he emphasized that transparency is essential.
“There needs to be accountability,” Bessent said plainly.
Independence Does Not Mean Immunity
The Federal Reserve has long defended its institutional independence, arguing that freedom from political pressure allows it to manage interest rates and monetary policy effectively.
However, Bessent pushed back on the idea that independence should shield unelected officials from oversight.
Unlike the president — who is elected by voters and subject to checks and balances from Congress and the courts — Federal Reserve leaders are not directly accountable to the American public.
“The Federal Reserve occupies a unique place in our system,” Bessent said. “They have enormous power, but virtually no supervision.”
He added that several concerning decisions occurred under the leadership of Federal Reserve Chair Jerome Powell, decisions that now deserve closer examination.
Sunday Shows Raise New Questions
Bessent expanded on those concerns during appearances on Sunday political programs, including Meet the Press.
While reaffirming that President Trump respects Federal Reserve independence, Bessent made clear that independence does not excuse runaway spending, ballooning losses, or unanswered questions.
During an exchange with host Kristen Welker, Bessent rejected comparisons between White House renovations and the Federal Reserve’s reported renovation overruns.
He noted that improvements at the White House are being funded privately, while Federal Reserve building projects have reportedly exceeded original budgets by hundreds of millions — potentially more than a billion dollars.
“The Federal Reserve prints its own money,” Bessent explained. “When there’s no oversight, costs can spiral out of control.”
Calls for Transparency Ignored
Bessent revealed that he has been calling since last summer for the Federal Reserve to conduct its own internal investigation — requests he says have gone unanswered.
More troubling, he claimed that inquiries from the Justice Department were also ignored.
“If most Americans hear from the Justice Department, they respond,” Bessent said. “The fact that these questions went unanswered should concern everyone.”
As President Trump continues to warn that unchecked spending and inflation could push the nation toward financial collapse, the administration’s message is consistent: no institution should be above scrutiny when America’s economic future is at stake.