type: timeline_event
Treasury Secretary Scott Bessent told people he was unhappy with the decision to criminally investigate Federal Reserve Chair Jerome Powell and conveyed those concerns directly to President Trump in a call on Sunday, January 12. Sources indicated Bessent told Trump the investigation "made a mess" and could harm financial markets.
The investigation, announced January 10, related to Powell's June 2025 Senate testimony about the multiyear renovation of the Federal Reserve's buildings in Washington. Powell issued an unprecedented video statement saying the criminal probe was retaliation for the Fed setting interest rates based on economic assessments rather than presidential preferences.
Bessent's dissent represented a rare instance of a cabinet member openly opposing a Trump initiative. As Treasury Secretary, Bessent was overseeing the process to select Powell's replacement, with the Fed chair's term expiring in May 2026. The tension highlighted the conflict between Trump's desire to control monetary policy and the concerns of financial officials about market stability and Fed independence.