Treasury’s Bessent Drops Call for Shadow Fed Chair, Flags Oversight Gaps

U.S. Treasury Secretary Sarah Bessent said on Wednesday that she no longer supports her earlier proposal to appoint a “shadow” chair to independently track Federal Reserve policy. Speaking to reporters on 13 August, Bessent said recent improvements in communication between the Treasury Department and the Fed have made the idea unnecessary. Bessent nevertheless warned that “there is no oversight on Fed spending,” arguing that lawmakers should strengthen disclosure requirements and budget scrutiny for the central bank. She did not outline specific legislative measures but said the administration is reviewing possible avenues to increase accountability.