Treasury Secretary Scott Bessent has publicly distanced himself from a report alleging he privately reprimanded President Donald Trump over a Department of Justice investigation into Federal Reserve Chair Jerome Powell. The controversy centres on a probe into the Fed's building renovation project, which is alleged to have gone hundreds of millions of dollars over budget.
Hedged Answers on "Meet the Press"
During a Sunday interview on NBC's "Meet the Press," anchor Kristen Welker pressed Bessent on an Axios report. The report claimed a "perturbed" Bessent told the president behind closed doors that the Justice Department's investigation "made a mess." When asked directly if the report was accurate, Bessent initially refused, stating, "I'm not going to discuss my conversations with the president."
He then performed a notable backtrack, adding, "But if I said that, I was wrong." Never directly answering the question, the Treasury Secretary pivoted to discussing market reactions, suggesting financial markets were the ultimate judge of the Fed's perceived independence.
Defending Oversight Versus Independence
Welker continued her line of questioning, asking if the DOJ probe undercut the Federal Reserve's cherished independence. Bessent brushed off the concern, asserting, "Of course, [Trump]'s committed to the independence of the Federal Reserve. But independence does not mean no oversight."
He drew a sharp distinction between the Fed's situation and White House renovations, which are funded privately. "The renovations at the White House are not $700 million, more than $1 billion or $1.5 billion over budget, Kristen," Bessent stated. He emphasized that the Fed, which "prints its own money," should operate with more transparency, asking, "why not have a little sunlight?"
Calls for Internal Investigation Go Unheeded
In his defence, Bessent claimed he has "called since last summer for the Fed to do its own internal investigation," but that call went unheeded. He concluded his argument by noting that if he received inquiries from the Justice Department, he would answer them, implying the Fed had not.
The secretary's carefully hedged responses highlight the delicate balance the administration is attempting to strike between asserting executive branch oversight and respecting the operational independence of the nation's central bank, a balance closely watched by global financial markets.
