Summary
Treasury Secretary Scott Bessent informed President Trump that the investigation into Federal Reserve Chair Jerome Powell created problems, potentially impacting financial markets. The investigation started without notifying major officials and involves allegations against Powell related to Fed building renovations. President Trump expressed dissatisfaction with Powell's performance but distanced himself from the investigation.
Key Facts
- Treasury Secretary Scott Bessent told President Trump that investigating the Fed Chair created issues.
- The investigation focuses on Jerome Powell allegedly misrepresenting renovation costs for the Federal Reserve headquarters.
- President Trump distanced himself from the investigation but criticized Powell's performance.
- U.S. Attorney Jeanine Pirro's office began the investigation without notifying key officials.
- The investigation affected the financial markets, causing the dollar to drop, while bond yields and gold prices rose.
- Fed Chair Jerome Powell denied wrongdoing and accused the Trump administration of using the Justice Department unfairly.
- Senator Thom Tillis plans to block actions on Powell's replacement over the investigation.
- Treasury stated there is no disagreement between Secretary Bessent and President Trump on the matter.
