Treasury Secretary Scott Bessent has told people that he is unhappy with the decision to criminally investigate Fed Chair Jerome Powell, a source with knowledge of the matter told CNN.
Bessent has expressed concern that the decision will negatively impact the markets. He has warned President Donald Trump in the past that firing Powell would also cause volatility in the markets – though that did not appear to be the case Monday.
The investigation – which drew bi-partisan criticism after it was first revealed on Sunday evening – centers on Powell’s June testimony before Congress about the central bank’s $2.5 billion renovation of its headquarters in Washington, DC. Powell himself responded with an extraordinary video statement in which he alleged the probe was sparked by his ongoing battle with the president over interest rates.
“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” Powell said in a statement.
Bessent’s frustration was first reported by Axios, which said he had told Trump late Sunday that the federal investigation into Powell “made a mess.” CNN has reached out to the Treasury Department for comment. Some administration officials insisted the Department of Justice’s unprecedented move was not political — and stressed that there was more investigating to do into Powell’s testimony.
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