Scott Bessent Floats Senate Banking Committee Probe of Jerome Powell Instead of DOJ Investigation – RedState
Treasury Secretary Scott Bessent signals that if there is to be an investigation into Federal Reserve Chairman Jerome Powell, it should come from Congress rather than the Justice Department.
According to an exclusive report from SemaforBessent raised in a closed-door meeting with Senate Republicans the idea that the Senate Banking Committee could investigate Powell rather than leaving the matter to federal prosecutors.
“In a closed-door meeting with Senate Republicans on Wednesday, Treasury Secretary Scott Bessent proposed that the Senate Banking Committee could investigate Federal Reserve Chairman Jerome Powell instead of the Justice Department, people in the room told Semafor.”
This is not a minor procedural debate. The question is whether control of the Federal Reserve is considered a criminal matter or control of Congress, and that distinction carries real political and constitutional weight.
The proposal directly intersects with an ongoing standoff involving Sen. Thom Tillis (R-NC), who has said he will not propose nominees to the Federal Reserve as long as the DOJ investigation remains active.
According to lawmakers cited in the report, some Republicans viewed Bessent’s suggestion as a possible way out.
“They are trying to present this to Thom to see if he will accept it,” one deputy said. “Thom, he was deadpan.”
In other words, it’s as much about unlocking appointments as it is about renovation bills.
The investigation focuses on Powell’s testimony last year about the Federal Reserve’s renovation plan. The Fed’s inspector general is already looking into cost overruns, making the DOJ’s criminal investigation even more notable.
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Other reports indicate that Bessent expressed concerns directly to President Donald Trump that the Justice Department investigation is creating an unnecessary distraction. These sources described the secretary as not defending Powell personally, but expressing concern about institutional fallout.
As one Republican member of Congress said during discussions around the proposal:
“What the president wants is an investigation” and hopefully “the Banking Committee will satisfy that desire for an investigation.”
This comment highlights the balancing act within the GOP. Lawmakers appear to be seeking a path that preserves Powell’s control while avoiding a prolonged standoff between the White House and the central bank over a criminal investigation.
Trump, however, took a much more direct approach in his public criticism of Powell, focusing directly on renovation cost overruns and management issues.
“He’s over budget by billions of dollars. So either he’s incompetent or he’s crooked. I don’t know what it is. But he sure as heck isn’t doing a very good job.”
Here is the central question: jurisdiction and power.
A DOJ investigation carries criminal implications and exacerbates tensions between the executive branch and the central bank. A Senate Banking Committee review would view the issue as one of legislative oversight. The Federal Reserve can operate independently in matters of monetary policy, but it remains a statutory entity created by Congress.
The fight is no longer whether Powell is scrutinized. It’s about who wields that power, federal prosecutors or elected lawmakers, and what that choice means in terms of control over one of the federal government’s most powerful institutions.
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