Sec. Scott Bessent Questions Federal Reserve’s Effectiveness, Compares Roles to "Universal Basic Income for Economists"

In a pointed critique of the U.S. central banking system, Secretary Scott Bessent has called for a comprehensive review of the Federal Reserve’s structure and effectiveness, questioning the value and output of its highly credentialed staff.

“What we need to do is examine the entire Federal Reserve institution and whether they have been successful,” Bessent stated, expressing concern over the central bank's policy decisions and economic impact. “All of these Ph.D.s over there, I don't know what they do,” he added, suggesting that the Fed’s economic experts may be detached from real-world outcomes.

Bessent went even further, likening the employment of numerous academic economists at the Fed to “Universal Basic Income for academic economists”—implying that many are being paid handsomely without demonstrating practical value or results.

His comments reflect growing skepticism in some political and financial circles over the Federal Reserve's handling of inflation, interest rates, and monetary policy in recent years. Critics argue that overly academic models have sometimes failed to address real economic pain, while others defend the institution’s independence and long-term approach.

The remarks are likely to fuel debate over central bank reform, accountability, and the role of academic theory in economic policymaking.