On 12/1, CNN, citing close sources, reported that U.S. treasury secretary Scott Bessent expressed dissatisfaction with the decision to criminally investigate federal reserve chairman Jerome Powell. Bessent feared the move would negatively impact financial markets. Early last year, he had cautioned President Trump that removing Powell could destabilize markets.

Axios had previously reported similar information. The outlet, citing close sources, stated that on the evening of 11/1, Bessent informed U.S. President Donald Trump the investigation into Powell "would create chaos" and could be detrimental to financial markets.

On NBC News, Trump asserted he "knew nothing" about the federal reserve chairman being investigated.

U.S. treasury secretary Scott Bessent at the White House in 9/2025. *Photo: AFP*

Powell stated the Fed had received a grand jury subpoena concerning the renovation project of its headquarters. He believed this was merely a "pretext" for not having aggressively cut interest rates as Trump desired.

Nevertheless, some U.S. officials asserted the Justice Department's unprecedented move was not politically motivated. They emphasized that many issues still needed clarification from Powell's testimony in 6. Jeanine Pirro, a Washington prosecutor, stated in an X post that her office had "repeatedly contacted the Fed to discuss capital overruns and the chairman's congressional testimony, but was ignored and forced to use legal procedures."

Earlier, Russell Vought, director of the Office of Management and Budget, accused Powell of breaking the law by failing to comply with government oversight regulations and misleading Congress about the details of the Fed headquarters renovation project.

However, the investigation drew bipartisan criticism immediately after its disclosure on the evening of 11/1. Republican senator John Kennedy stated he would be "very shocked" if Powell "did anything wrong." Senator Lisa Murkowski suggested Congress might need to investigate the Justice Department. Senate Majority Leader John Thune believed the move could complicate replacing Powell, while emphasizing the desire for the Fed to operate independently.

U.S. financial markets on 12/1 showed little reaction to the investigation news. Although stock indexes initially dipped at opening, they later rebounded, closing at record highs. The country's government bond market also remained stable.

Ha Thu (according to Reuters)