Washington, D.C.: Treasury Secretary Scott Bessent has openly called for a look into Federal Reserve Chair Jerome Powell’s private communications. The move marks a dramatic shift in the traditional relationship between the U.S. Treasury and the Fed. Bessent’s remarks follow allegations that Powell conveyed specific economic concerns in private settings that could have influenced market movements before being made public.
“There have been concerns raised about what was conveyed in these private meetings,” Bessent noted during a press briefing. “To clear the air and ensure the integrity of our financial systems, I think an investigation is a positive step.” The tension between the two departments has been brewing since the new administration took office, with frequent clashes over inflation management and interest rate policy.
Jerome Powell, whose term has been defined by navigating the post-pandemic economy, now faces intense scrutiny from a Treasury Secretary who appears ready to challenge the Fed’s traditional wall of secrecy. While the Federal Reserve has not issued a formal rebuttal to Bessent’s comments, sources within the bank suggest that Powell’s meetings were well within the scope of routine stakeholder engagement. However, the prospect of a formal investigation led by congressional committees or the Inspector General threatens to overshadow the Fed’s upcoming policy decisions. If an investigation proceeds, it could lead to new regulations regarding how Fed officials interact with private sector leaders.