Treasury Secretary Scott Bessent said Wednesday he believes in the independence of the Federal Reserve, but also in accountability for the central bank.

"The independence of the Fed is based on its trust with the American people, and the Federal Reserve lost the trust of the American people when it created, when it allowed the greatest inflation of 49 years to ravage, ravage working people in this country," Bessent said during a hearing Wednesday before the House Financial Services Committee.

Bessent went on to say that the Fed should be independent in setting monetary policy, but every other program it undertakes impinges on that independence, whether it's cost overruns on a building, climate, or offering political opinion.

When asked whether, as a member of the Cabinet, he would advise the president to verbally and politically interfere with the decision-making of the Federal Reserve, Bessent said, "It's his right, just as it's Senator Warren's right in September of 2024 to say that they should, shouldn't cut 50 basis points, they should cut 75 basis points. It's the right of everyone in here."

Rep. Juan Vargas (D-Calif.) expressed disappointment in Bessent's comments, saying, "To hear the libelous comment that you made about the Fed, that we lost faith in the Fed ... because of inflation and the cost overrun in the buildings ... mimicking basically the same thing that the president said about the chairman … That's very disappointing."

The comments came during heightened tension between the White House and the Fed. The Justice Department has opened a criminal investigation into Fed Chair Jay Powell about testimony he made last summer before the Senate on renovations to the central bank's headquarters in Washington, D.C.

Powell has said the investigation is the result of policy differences between the president and the central bank. It has unleashed concerns from both parties about protecting central bank independence. Powell's term as chair ends in May. The president nominated former Fed governor Kevin Warsh to be replace him.

Read more: How much control does the president have over the Fed and interest rates?

During the hearing, Democrats aired their gripes with the administration on a range of topics, including tariffs, President Trump's crypto holdings, immigration, manufacturing, and financial regulations.

The hearing became explosive at times, with several Democrats shouting at Bessent.

Rep. Gregory Meeks (D-N.Y.) asked Bessent whether he'd commit to pausing or ratcheting up scrutiny of any bank charter or licensing application at the Office of the Comptroller of the Currency (OCC) connected to World Liberty Financial, the president's company, until conflicts of interest and foreign influence reviews are completed and shared with Congress.

When Bessent responded, "No, congressman. The OCC is an independent entity," Meeks yelled, "Stop covering for the president! Don't be a flunky! Work for the American people!"

Jennifer Schonberger is a veteran financial journalist covering markets, the economy, and investing. At Yahoo Finance she covers the Federal Reserve, Congress, the White House, the Treasury, the SEC, the economy, cryptocurrencies, and the intersection of Washington policy with finance. Follow her on X @Jenniferisms and on Instagram.

Click here for the latest economic news and indicators to help inform your investing decisions

Read the latest financial and business news from Yahoo Finance