U.S. Treasury Secretary Warns Trump Fed Chair Probe Could Disrupt Markets
Treasury Secretary Scott Bessent told President Donald Trump that the criminal investigation into Federal Reserve Chair Jerome Powell had made a mess and risked destabilizing financial markets, according to Axios sources.
Treasury Secretary Scott Bessent warned President Trump that the federal investigation into Federal Reserve Chair Jerome Powell had become chaotic and could negatively affect financial markets. The investigation, led by U.S. Attorney Jeanine Pirro's Washington office, was launched without notifying Treasury or top White House officials. Market concerns emerged with a drop in the dollar and rises in bond yields and gold prices. The investigation centers on Powell's testimony regarding renovation costs for the Federal Reserve's headquarters, which have soared to $2.5 billion. Powell's term ends in May, but he faces a potential deadlock in Senate confirmations due to the probe, with Senator Thom Tillis opposing any Trump nominees until the issue is resolved.
- Federal Reserve Chair: The head of the U.S. central bank, responsible for overseeing monetary policy and maintaining financial stability.
- Treasury Secretary: The head of the U.S. Department of the Treasury, responsible for managing government revenue and economic policy.
- Grand jury subpoena: A legal order requiring testimony or documents as part of a criminal investigation conducted by a grand jury.