Scott Bessent signals support for a probe into whether Jerome Powell improperly shared market-sensitive information.
Washington, D.C., January 13, 2026: In a significant escalation of tension between the White House and the Federal Reserve, U.S. Treasury Secretary Scott Bessent indicated on Tuesday that he would support a formal investigation into Federal Reserve Chair Jerome Powell. The controversy stems from reports that Powell may have engaged in private conversations with high-profile individuals, potentially conveying sensitive economic concerns or non-public information.
Speaking to reporters, Bessent emphasized the importance of transparency and institutional integrity. “I would be happy for an investigation to take place,” Bessent stated, adding that it is crucial for the public to have confidence that Federal Reserve leadership is not providing unfair advantages to select private parties. The Treasury Secretary’s comments follow a series of reports suggesting that Powell held undisclosed meetings where he expressed private worries about the economic trajectory that differed from his public stance.
The Federal Reserve has long maintained its independence from political interference, and any such investigation would represent a historic challenge to that autonomy. Critics of the administration argue that targeting Powell is a move to pressure the Fed into lowering interest rates or aligning more closely with the Executive Branch’s fiscal agenda. Conversely, Bessent and other administration officials argue that the Federal Reserve must be held to the highest ethical standards to prevent market manipulation. As of now, the Office of Inspector General has not officially confirmed a probe, but the Treasury Department’s public endorsement of an inquiry significantly raises the stakes for Jerome Powell’s future at the helm of the central bank.
