Scott Bessent: Jerome Powell Investigation Linked to ‘Construction Incompetence’
U.S. Treasury Secretary Scott Bessent comments on the final round of interviews for Federal Reserve chairman and the probe into current Chair Jerome Powell on ‘Kudlow.’
During a recent appearance on “Kudlow,” U.S. Treasury Secretary Scott Bessent discussed the ongoing investigation into Federal Reserve Chairman Jerome Powell, attributing it to “construction incompetence.” He remarked, “I don’t know anything about construction; seemingly not many people at the Fed do.”
The investigation aims to determine whether Powell misled Congress regarding the extent of renovations at the Federal Reserve’s Washington headquarters. The Department of Justice has hinted at a potential criminal indictment concerning Powell’s Senate testimony about these renovations.
TRUMP SET TO INTERVIEW THIS FINAL CANDIDATE BEFORE NAMING NEXT FED CHAIR
President Donald Trump and Federal Reserve Chair Jerome Powell. (Getty Images/Photo illustration / Getty Images)
Bessent acknowledged that while he is not privy to the details of the investigation, he believes the Federal Reserve requires significant reform. He stated, “It does need a thorough overhaul,” and expressed hope that the investigation might catalyze a push for greater transparency within the institution.
“It has a tremendous amount of sway and influence over Americans’ lives, but there is no accountability,” he added.
BESSENT SIGNALS POTENTIAL VENEZUELA SANCTIONS RELIEF ‘AS SOON AS NEXT WEEK’: REPORT
Reiterating President Trump’s dissatisfaction with Powell, Bessent remarked, “He’s frequently expressed his disappointment with Chair Powell.” Powell himself has described the investigation, authorized by U.S. Attorney for the District of Columbia Jeanine Pirro, as “unprecedented” in a video message posted by the Fed.
Federal Reserve Chair Jerome Powell arrives at the U.S. Federal Reserve in Washington Jan. 13, 2026. (Nathan Howard/Reuters / Reuters)
In his video message, Powell emphasized the importance of maintaining the Fed’s independence, stating, “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.”
Trump, a vocal critic of Powell, has repeatedly threatened to dismiss him, accusing him of political bias, despite the expectation that the Fed chair should remain nonpartisan.
Bessent also touched on the ongoing search for Powell’s successor, revealing that the final round of interviews has concluded. President Trump expressed a desire for Kevin Hassett to stay on as director of the National Economic Council, effectively removing him from consideration for the Fed chair position.
“I actually want to keep you where you are, if you want to know the truth,” Trump stated during a White House meeting.
TREASURY SECRETARY BESSENT VOWS TO LEAVE ‘NO STONE UNTURNED’ IN MINNESOTA FRAUD PROBE
Director of the National Economic Council Kevin Hassett looks on as U.S. President Donald Trump speaks during a press availability in the Oval Office of the White House on September 05, 2025 in Washington, DC. (Kevin Dietsch/Getty Images / Getty Images)
While many viewed Hassett as a strong candidate for the Fed chair position, Bessent noted that the ultimate decision lies with Trump. “If that’s the president’s prerogative, then so be it,” he remarked.
Bessent also shared that Trump has not disclosed his thoughts on the selection process for Powell’s successor. “President Trump hasn’t shared his thoughts with me,” he stated. “What I can tell you is he’s been very deliberate. He has asked exactly the questions that I think you and I and the markets would want to ask.”
Scott Bessent, U.S. Treasury Secretary, during an Economic Club of Minnesota event in Golden Valley, Minnesota, US, on Thursday, Jan. 8, 2026. (Ben Brewer/Bloomberg/Getty Images / Getty Images)
Bessent emphasized that the president seeks a candidate who can bring order to the “sprawling” Federal Reserve. “Only the president knows… it’s his prerogative. He has been thinking about this almost since day one of Trump 2.0,” he added.
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President Trump is expected to announce Powell’s successor in January, with Bessent indicating that this announcement could come either before or after the president’s trip to Davos.
U.S. Treasury Secretary Scott Bessent comments on the final round of interviews for Federal Reserve chairman and the probe into current Chair Jerome Powell on ‘Kudlow.’
During a recent appearance on “Kudlow,” U.S. Treasury Secretary Scott Bessent discussed the ongoing investigation into Federal Reserve Chairman Jerome Powell, attributing it to “construction incompetence.” He remarked, “I don’t know anything about construction; seemingly not many people at the Fed do.”
The investigation aims to determine whether Powell misled Congress regarding the extent of renovations at the Federal Reserve’s Washington headquarters. The Department of Justice has hinted at a potential criminal indictment concerning Powell’s Senate testimony about these renovations.
TRUMP SET TO INTERVIEW THIS FINAL CANDIDATE BEFORE NAMING NEXT FED CHAIR
President Donald Trump and Federal Reserve Chair Jerome Powell. (Getty Images/Photo illustration / Getty Images)
Bessent acknowledged that while he is not privy to the details of the investigation, he believes the Federal Reserve requires significant reform. He stated, “It does need a thorough overhaul,” and expressed hope that the investigation might catalyze a push for greater transparency within the institution.
“It has a tremendous amount of sway and influence over Americans’ lives, but there is no accountability,” he added.
BESSENT SIGNALS POTENTIAL VENEZUELA SANCTIONS RELIEF ‘AS SOON AS NEXT WEEK’: REPORT
Reiterating President Trump’s dissatisfaction with Powell, Bessent remarked, “He’s frequently expressed his disappointment with Chair Powell.” Powell himself has described the investigation, authorized by U.S. Attorney for the District of Columbia Jeanine Pirro, as “unprecedented” in a video message posted by the Fed.
Federal Reserve Chair Jerome Powell arrives at the U.S. Federal Reserve in Washington Jan. 13, 2026. (Nathan Howard/Reuters / Reuters)
In his video message, Powell emphasized the importance of maintaining the Fed’s independence, stating, “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.”
Trump, a vocal critic of Powell, has repeatedly threatened to dismiss him, accusing him of political bias, despite the expectation that the Fed chair should remain nonpartisan.
Bessent also touched on the ongoing search for Powell’s successor, revealing that the final round of interviews has concluded. President Trump expressed a desire for Kevin Hassett to stay on as director of the National Economic Council, effectively removing him from consideration for the Fed chair position.
“I actually want to keep you where you are, if you want to know the truth,” Trump stated during a White House meeting.
TREASURY SECRETARY BESSENT VOWS TO LEAVE ‘NO STONE UNTURNED’ IN MINNESOTA FRAUD PROBE
Director of the National Economic Council Kevin Hassett looks on as U.S. President Donald Trump speaks during a press availability in the Oval Office of the White House on September 05, 2025 in Washington, DC. (Kevin Dietsch/Getty Images / Getty Images)
While many viewed Hassett as a strong candidate for the Fed chair position, Bessent noted that the ultimate decision lies with Trump. “If that’s the president’s prerogative, then so be it,” he remarked.
Bessent also shared that Trump has not disclosed his thoughts on the selection process for Powell’s successor. “President Trump hasn’t shared his thoughts with me,” he stated. “What I can tell you is he’s been very deliberate. He has asked exactly the questions that I think you and I and the markets would want to ask.”
Scott Bessent, U.S. Treasury Secretary, during an Economic Club of Minnesota event in Golden Valley, Minnesota, US, on Thursday, Jan. 8, 2026. (Ben Brewer/Bloomberg/Getty Images / Getty Images)
Bessent emphasized that the president seeks a candidate who can bring order to the “sprawling” Federal Reserve. “Only the president knows… it’s his prerogative. He has been thinking about this almost since day one of Trump 2.0,” he added.
CLICK HERE TO GET FOX BUSINESS ON THE GO
President Trump is expected to announce Powell’s successor in January, with Bessent indicating that this announcement could come either before or after the president’s trip to Davos.
