Bessent Warns: Fed Investigation Sparks Market Turmoil, Could Prompt Powell to Refuse Handover

Odaily According to AXIOS, two informed sources revealed that U.S. Treasury Secretary Bessent told Trump on Sunday evening that the federal investigation into the Federal Reserve Chairman has become "a mess" and could adversely affect financial markets. A source familiar with Bessent's conversation with Trump stated: "The Secretary is very unhappy, and he has made the President aware of this." Currently, Trump appears to be deliberately distancing himself from the investigation into Fed Chairman Powell. Sources said the investigation was initiated by the Washington office of U.S. Attorney Jeanine Pirro without prior notification to the Treasury Department, senior White House officials, or the main Justice Department. Another source indicated that Bessent "believed Powell would leave when the President appointed a new Fed Chair. But now that won't happen. Powell's stance has become even more resolute. This has really made a mess of things." However, sources stated that Bessent did not question the necessity of investigating Powell during his conversation with Trump, nor was he defending the Fed Chairman.