Treasury Secretary Scott Bessent Aims to Centralize Power Over Major U.S. Banking Regulators 🏦

Treasury Secretary Scott Bessent is moving to consolidate influence over U.S. banking regulators, including the Federal Reserve, according to Semafor. The Treasury Department is creating recommendations to simplify how agencies like the FDIC and OCC operate. Bessent said the Treasury would lead efforts to refocus regulators on material risks and pursue “safe, sound and smart deregulation,” criticizing current rules for ignoring growth and common sense. A new Trump executive order requiring independent agencies to submit regulations for OMB review. Critics warn this could politicize banking oversight and erode Fed independence.