Treasury Secretary Scott Bessent told NBC’s Kristen Welker on Sunday’s “Meet the Press” that the Federal Reserve can be independent from the administration, but still be subject to oversight actions such as investigations.
The Department of Justice (DOJ) revealed Jan. 11 that the United States Attorney’s Office for the District of Columbia opened a criminal investigation into Federal Reserve Chairman Jerome Powell. Pressing Bessent on the probe, Welker asked if President Donald Trump is committed to maintaining the independence of the Federal Reserve.
“Of course he’s committed to the independence of the Federal Reserve. But independence does not mean no oversight,” Bessent said.
Welker pushed back, asking Bessent if the probe into the Fed’s ongoing headquarters renovations “undercut the independence” while noting renovations at the White House.
“The renovations at the White House are not the 700 million, more than a billion, a billion five, over budget, Kristen. And the White House— that is being paid for with private funds. If I wanna buy a new chair for my office at Treasury, that is an appropriation,” Bessent responded. “Just to understand, the Federal Reserve has magic money. They print their own money. So when you have no oversight, why not have a little sunlight?”
“I have called since last summer for the Fed to do its own internal investigation, and that has not been heeded. Not been heeded. And again, I don’t know about you, if I were to receive inquiries from the Justice Department, I would answer them,” Bessent added. “They went unanswered.”
WATCH:
In July 2025, Republican Florida Rep. Anna Paulina Luna officially referred Powell to the DOJ to investigate alleged perjury related to the more than $2 billion headquarters renovation project. Initially approved by the Board of Governors in 2017, the cost of renovating the headquarters jumped an estimated $700 million, rising from roughly $1.9 billion to $2.5 billion.
The Fed attributed the rising costs to both the pandemic driving up prices for steel, cement, and other materials, and some of the work also being underground, according to The Washington Post. Trump officials, however, accused the Fed of including VIP dining rooms and elevators, which Powell has denied, the Post reported.
In response, Powell called the investigation an “unprecedented action” which should be seen “in the broader context of the administration’s threats and ongoing pressure.”
“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation,” Powell stated. “I have served at the Federal Reserve under four administrations, Republicans and Democrats alike.”
“In every case, I have carried out my duties without political fear or favor, focused solely on our mandate of price stability and maximum employment. Public service sometimes requires standing firm in the face of threats. I will continue to do the job the Senate confirmed me to do, with integrity and a commitment to serving the American people,” Powell added.
Prior to Luna’s official referral, Trump and Powell faced major tensions over lowering interests rates, with the president repeatedly calling for it. Despite the disagreement, Trump told reporters in April 2025 he had “no intention” of firing the chairman. While Powell’s chairmanship ends in May 2026, he will have two years left as a governor on the board.
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