Treasury Chief Reportedly Sees Powell Inquiry as a 'Mess'

The Department of Justice's move against Fed chief Jerome Powell isn't getting much love, with prominent GOP senators and every living former Fed chief coming out against it. Even President Trump has distanced himself from the criminal investigation. Now Axios is reporting that another big name is angry about the move—Treasury Secretary Scott Bessent. "The secretary isn't happy, and he let the president know," a source tells the outlet. The Treasury chief is worried on a number of fronts: the effect on financial markets and the increased likelihood that a ticked-off Powell would remain as a Fed governor even after his stint as chairman expires in May.

Powell is now "dug in," says another Axios source. "This really made a mess of things." Politico, meanwhile, reports that one key figure has remained on the sidelines in all of this: GOP Sen. Tim Scott, chair of the Senate Banking Committee. The panel leads oversight of the Federal Reserve, and it questioned Powell last year over the Fed's renovation projects that are at the center of the criminal investigation. "Among the questions left unaddressed by Scott is whether he shares his GOP colleagues' concerns about Fed independence or feels misled by the June testimony," notes Politico. Scott has refused to comment publicly on the controversy since news of it broke over the weekend.