Treasury Secretary Scott Bessent told President Donald Trump in a late Sunday call that the unprecedented criminal investigation into Federal Reserve Chair Jerome Powell over his testimony on renovation costs “made a mess” and risked financial-market stability, according to sources familiar with the conversation. The probe, launched without advance notice by U.S. Attorney Jeanine Pirro’s office, sparked a sharp response from Powell, who said in a video statement that “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.”
Trump denied involvement, saying “I don’t know anything about it, but he’s certainly not very good at the Fed,” even as the move drew bipartisan concern on Capitol Hill about political interference, with Sen. Thom Tillis vowing to “oppose the confirmation of any nominee for the Fed—including the upcoming Fed Chair vacancy—until this legal matter is fully resolved.” Markets initially reacted with volatility before recovering, as Pirro defended her office’s actions, stating “none of this would have happened if they had just responded to our outreach.”