Treasury Secretary Scott Bessent was reportedly unsettled over the Department of Justice's probe of Federal Reserve Chair Jerome Powell and warned President Donald Trump that it could disrupt the financial market, according to reports on Monday.
Bessent apparently called Trump late Sunday to express his concern, saying the investigation "made a mess," which appeared to have been realized after the dollar's value dropped Monday, while bond yields and gold prices climbed after anxiety following potential political interference with the Federal Reserve, Axios reported.
"The secretary isn't happy, and he let the president know," a source with knowledge of the phone call between Bessent and Trump told Axios.
In response to the criticism, Trump appeared to have distanced himself from the DOJ investigation after claiming Powell "allegedly misrepresenting the costs of renovations to the Federal Reserve's headquarters in D.C.," according to Axios.
Top White House officials, including Bessent and the main Justice Department, did not have knowledge of the probe before it was announced by U.S. Attorney Jeanine Pirro's office in D.C.
Lawmakers — both Republicans and Democrats — have also responded to the probe, calling out the Trump administration for the move.
Sen. Thom Tillis (R-NC), member of the Senate Banking Committee who does not plan to seek reelection in November following a public battle with Trump, dropped a "damning statement" on Sunday. He vowed to block any Trump nominee in response.
“If there were any remaining doubt whether advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none. It is now the independence and credibility of the Department of Justice that are in question,” Tillis said.
“I will oppose the confirmation of any nominee for the Fed—including the upcoming Fed Chair vacancy—until this legal matter is fully resolved," Tillis said.
Powell has argued that Trump has pressured him to drop the interest rate and has resisted the president's demands. He issued a defiant statement in a video on Sunday, responding to the president's most recent revenge attack. Trump's other retribution campaigns have targeted Federal Reserve Governor Lisa Cook, FBI Director James Comey and New York Attorney General Letitia James.
“I have deep respect for the rule of law and for accountability in our democracy. No one—certainly not the chair of the Federal Reserve—is above the law,” Powell said. “But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.”
