Treasury Secretary Scott Bessent has come out in defense of the Department of Justice's investigation into Federal Reserve Chair Jerome Powell, stating that independence does not mean a lack of accountability. The probe, which has issued grand jury subpoenas to the central bank, is tied to a criminal investigation into Powell's testimony regarding a multi-million dollar renovation project for several Federal Reserve offices in Washington D.C.
Bessent argued that the Fed must be "beyond reproach" in its dealings, as it is considered one of the most powerful and unappointed groups in the US. He suggested that if the Fed were to overspend on such projects, it could simply print more money, implying that there should be no accountability for such actions.
The Justice Department's investigation has been criticized by Trump officials, who claim that the probe is part of a broader campaign to pressure central bank officials into cutting interest rates aggressively. However, Bessent dismissed these claims, stating that the Fed must answer to Congress and the American people, not just its own leadership.
Bessent also expressed his desire for greater oversight of the Fed's activities, particularly with regards to its spending habits. He suggested that if he were to choose a new chair for his office at Treasury, it would come from an appropriation process, whereas the Fed has the power to print money without any such constraints.
The investigation into Powell's testimony and the renovation project have sparked concerns about the central bank's independence and accountability. Bessent's defense of the probe suggests that he believes the Fed must be held accountable for its actions, while also acknowledging the importance of maintaining its independence from political interference.
Bessent argued that the Fed must be "beyond reproach" in its dealings, as it is considered one of the most powerful and unappointed groups in the US. He suggested that if the Fed were to overspend on such projects, it could simply print more money, implying that there should be no accountability for such actions.
The Justice Department's investigation has been criticized by Trump officials, who claim that the probe is part of a broader campaign to pressure central bank officials into cutting interest rates aggressively. However, Bessent dismissed these claims, stating that the Fed must answer to Congress and the American people, not just its own leadership.
Bessent also expressed his desire for greater oversight of the Fed's activities, particularly with regards to its spending habits. He suggested that if he were to choose a new chair for his office at Treasury, it would come from an appropriation process, whereas the Fed has the power to print money without any such constraints.
The investigation into Powell's testimony and the renovation project have sparked concerns about the central bank's independence and accountability. Bessent's defense of the probe suggests that he believes the Fed must be held accountable for its actions, while also acknowledging the importance of maintaining its independence from political interference.
- think the Fed should be super transparent about how it spends all that cash 
! I mean, yeah, independence is key, but you can't have a power vacuum where anyone can just print money willy-nilly 
. Powell's got to answer for those renovation costs somehow... Interesting 
, can't believe they're making a big deal about this 
. The Fed has been making huge decisions without proper oversight for years 
. Bessent is just saying what everyone already knows - the Fed is too powerful 
, but that doesn't mean we should just let them do whatever they want without any consequences 
.
so like I'm trying to understand this... if the Treasury Secretary is saying the Fed has to be "beyond reproach" but still answer to Congress and the people, then who's really in charge? 
and what's with this print more money thing? like, how does that even work? doesn't it just lead to inflation and stuff? 
also, why is Jerome Powell getting investigated for a multi-million dollar renovation project when isn't that just basic maintenance? 
seems kinda fishy to me... 
I think Bessent is right on the money when he says the Fed should be answerable to Congress and the people, not just its own inner circle. It's time for more transparency in this whole thing.
It seems like Bessent is trying to walk a fine line here, but at the end of the day, someone needs to keep these guys in check. Maybe the best way would be for Congress to take a closer look at the Fed's finances and make some adjustments so they can't just print money willy-nilly? 
to distract us from the real issue at hand - who really has control over the economy? The Fed thinks it's all about setting interest rates, but Bessent is hinting that it's more about printing money and avoiding accountability. I mean, if the Fed can just print its way out of overspending on renovation projects, what's to stop them from doing the same with their entire budget? It's like they're above the law 
.
. Bring on the grand jury subpoenas!
They have a lot of power and influence over our economy, so it makes sense that they'd be subject to some level of accountability #AccountabilityMatters.
. It's all about finding that balance between independence and accountability 
. The investigation into Powell's testimony is definitely important to get to the bottom of #FedInvestigation.
But at the same time, I get why people are worried about them being too out of touch with Congress and the ppl... shouldn't they be answerable to us? 
. But then Bessent shows up and is all like "Hey, nope! The Fed gotta be accountable!" 
.
. But I don't know... it feels like there's more to it than that 
. Anyway, I'm just keeping an eye on this and seeing how it all plays out 
.