Fed's Independence at Risk? Scott Bessent Details 'Massive Mistakes' on Inflation

The Federal Reserve, an institution designed for independence, finds itself under intense scrutiny, with prominent investor Scott Bessent, founder and CEO of Key Square Group, asserting it has made “a lot of mistakes,” particularly regarding its handling of inflation. While strongly advocating for the Fed’s autonomy, Bessent didn't mince words, suggesting its past missteps have now placed that very independence in jeopardy.

Bessent's core argument centers on the Fed's actions – or inactions – during critical economic periods.

He contends that the central bank kept interest rates artificially low for far too long, effectively fueling the inflationary surge that has impacted economies globally. This prolonged period of ultra-low rates, coupled with the massive expansion of its balance sheet through quantitative easing during and after the pandemic, are cited as primary culprits for the current economic headaches.

The criticism isn't just about economic theory; Bessent highlights the tangible impact, calling the inflation allowed by the Fed a .