Treasury Secretary Scott Bessent is not happy with the Justice Department’s criminal investigation into Federal Reserve Chairman Jerome Powell, multiple sources told ABC News, warning it creates an unnecessary distraction.
Bessent conveyed those concerns directly to President Donald Trump in a call on Sunday, sources said.
Sources added Bessent was not advocating for Powell or questioning the investigation when he spoke to the president, but he did make clear his concerns.
Department of the Treasury Scott Bessent speaks before President Donald Trump arrives at the Mount Airy Casino Resort in Mount Pocono, Pa., Dec. 9, 2025.
Matt Rourke/AP
Axios was the first to report the call. The White House has not responded to a request for comment.
When ABC News reached out for comment about the Axios report, a Treasury Department spokesperson said, “There is zero daylight between Secretary Bessent and President Trump, and the ‘sources’ in this story do not speak for the Secretary.”
Powell announced the Justice Department probe in a rare video message on Sunday night. The news sparked backlash from former Federal Reserve and Treasury officials as well as current members of Congress, including several Republicans who typically support the administration’s actions.
Senate Majority Leader John Thune on Tuesday said the Federal Reserve “is not something to be trifled with” given its “profound impact” on global markets, and that the administration should brief the Senate on the probe “at some point.”
The investigation is related to Powell’s testimony last June about the multiyear renovation of the central bank’s buildings in Washington. But Trump has made Powell a frequent target of his attacks and push to cut interest rates, and Powell said he believes the probe is politically motivated.
White House press secretary Karoline Leavitt on Monday said Trump has “every right” to criticize Powell’s leadership but said he didn’t direct the Justice Department to investigate.
On Tuesday, Trump commented on Powell as he left the White House to travel to Michigan for an economic speech.
ABC News Chief White House Correspondent Mary Bruce asked the president, “A growing number of Republicans are voicing concerns about this investigation. They say the investigation into Jerome Powell is going to undermine confidence in the Fed. Do you approve of this investigation?”
“He’s billions of dollars over budget. So, either he’s incompetent or he’s crooked. I don’t know what he is. But certainly, he doesn’t do a very good job,” Trump said.
