U.S. Treasury Secretary Scott Bessent has discussed with market participants the
idea of reshaping the relationship between the U.S. Treasury and the Federal
Reserve by incorporating elements of the Bank of England’s governance model,
according to people familiar with the matter.
Bessent has expressed admiration for the UK system, where the Bank of England
operates with operational independence but maintains formal communication with
the government through mechanisms such as inflation-target letters between the
governor and chancellor. Supporters of the idea argue it could improve
transparency and clarify responsibilities during crises, while critics warn it
could blur the Fed’s independence established under the 1951 Treasury-Fed
Accord.
