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Treasury Secretary Bessent Voices Concerns Over Powell Investigation's Market Impact

KVIA•Monday, January 12, 2026 at 11:43 PM•CNN Newsource

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Treasury Secretary Scott Bessent has expressed dissatisfaction with the criminal investigation into Federal Reserve Chair Jerome Powell, fearing it could destabilize financial markets. The inquiry, which has bipartisan criticism, focuses on Powell's congressional testimony regarding a $2.5 billion renovation of the Fed's headquarters. Powell contends that the investigation stems from his disagreements with President Trump over interest rates. While some officials downplay the investigation's political implications, it has sparked significant backlash among lawmakers. Notably, Republican Senator Thom Tillis has announced he will oppose any Fed nominees until the matter is resolved, highlighting the potential political ramifications of the probe.

Key Details: • Investigation centers on Powell's June testimony about a $2.5 billion renovation. • Bessent warned Trump that firing Powell could lead to market volatility. • Senator Thom Tillis will oppose Fed nominees until the investigation concludes. • Market reactions were muted, with the Dow closing up 86 points. • Powell claims the investigation is linked to political pressures regarding interest rates.

politics trump investigation federal-reserve market-volatility

People & Organizations

Donald TrumpDepartment of JusticeFederal ReserveJerome PowellLisa MurkowskiScott BessentJohn ThuneThom TillisJohn KennedyOffice of Management and Budget

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