Scott backed Trump’s demand for interest rate cuts and criticized the Fed for not acting sooner.
Scott Bessent, the Treasury Secretary, said on Wednesday that members of Congress should be banned from trading individual stocks, according to Bloomberg.
He pointed to what he described as “eye-popping” profits made by lawmakers, claiming their gains were better than most hedge funds. He specifically named Nancy Pelosi and Ron Wyden while calling out the credibility of the House and Senate.
In Scott’s words, “The American people deserve better than this.” His demand adds weight to recent legislative efforts already underway in both chambers of Congress to shut down single-stock trading by elected officials.
The push for reform isn’t new, but Scott’s comments come at a time when Republicans and Democrats are both being pressed to move on several versions of a trading ban. The issue has been building pressure over the past few months, and now that the Treasury Secretary is taking a side, the balance may tip. While some lawmakers are supporting the ban, others are openly resisting it, even those from the same party.
Mike Johnson stalls vote while Luna pushes ahead
Florida Congresswoman Anna Paulina Luna is preparing to force a floor vote in September by using a discharge petition. House Speaker Mike Johnson has been actively working to block her plan. Even though banning stock trades has bipartisan support, it also has fierce opposition, and also bipartisan.
During the August recess, members from both sides privately raised concerns with leadership, hoping to stop the momentum before Congress returns in the fall.
Pelosi’s spokesperson, Ian Krager, responded to the criticism, saying the former House Speaker “does not own any stocks and has no knowledge or subsequent involvement in any transactions.” Wyden’s office didn’t say anything when asked for comment.
The controversy isn’t limited to one side of the aisle. In April, House Democrats targeted Marjorie Taylor Greene after she revealed stock purchases right before former President Donald Trump rolled back part of his tariff policy.
Missouri Senator Josh Hawley went even further that same month, reintroducing his bill aimed at banning lawmakers and their spouses from trading stocks. He renamed the bill the PELOSI Act.
Scott said plainly, “People shouldn’t come to Washington to get rich. They should come to serve the American people.” He also added, “If any private citizen traded this way, the SEC would be knocking on their door.”
The Treasury chief tied the behavior directly to a growing mistrust in government. With his voice added to the conversation, the pressure is now falling directly on Congress to act, or defend their positions.
Scott calls for rate cut, aligns with Trump on Fed
Scott also used his Wednesday interview to call on the Federal Reserve to lower interest rates during their next meeting in September. He said the Fed should begin with a 50 basis point cut, and ideally drop rates by as much as 150 to 175 basis points overall.
Scott claimed the Fed should’ve acted earlier, either in June or July, if they had been paying attention to job growth. A federal report released last week showed employment numbers have been worse than expected, with significant revisions downward for the past two months.
This is the first time Scott has directly called on the central bank to change its monetary policy, a move that links him closely with Trump’s economic agenda.
Trump, now back in the White House, has repeatedly demanded rate cuts and has attacked the Fed for stalling. He recently hinted at legal action against Federal Reserve Chair Jerome Powell over the handling of a renovation project inside the Fed.
The threat was vague, and it’s not clear whether there’s a legal path to remove Powell, but Trump allies have been looking for ways to challenge his position. Scott repeated his view that the Fed is “an unaccountable agency,” a label he’s used before, and made it clear he thinks the central bank is dragging its feet.
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