U.S. Treasury Secretary Scott Bessent is pursuing a plan to consolidate power over banking regulators, including the Federal Reserve, as part of the Trump administration's economic strategy. The Treasury Department is drafting recommendations to streamline agencies such as the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC). These efforts are supported by an executive order requiring independent agencies to submit regulations for review by the Office of Management and Budget. The strategy seeks to reduce the Federal Reserve's independence in rulemaking, allowing the Treasury to influence regulations governing financial institutions. Dan Katz, Treasury Chief of Staff, has argued that banking regulation is a fiscal function that should be under politically accountable entities. Karen Petrou of Federal Financial Analytics noted that this approach enables Treasury to assert control without legislative changes. Critics, including former Treasury officials, caution that this move could politicize bank regulation and disrupt long-standing practices. The confirmation of key nominees, such as Luke Pettit for assistant treasury secretary for financial institutions, is expected to be pivotal in advancing these recommendations. Additionally, the broader economic risks of such policies, described as part of a 'Mar-a-Lago Accord,' remain a subject of debate among experts.