Bessent warns: Federal Reserve investigation triggers market turmoil, may prompt Powell to refuse to step down

According to Odaily, citing AXIOS, two sources familiar with the matter revealed that U.S. Treasury Secretary Bessent told Trump on Sunday night that the federal investigation into the Federal Reserve Chairman has become "a mess" and could have an adverse impact on financial markets. A source familiar with the call between Bessent and Trump said, "The Secretary is not happy, and he has made that clear to the President." At present, Trump appears to be deliberately distancing himself from the investigation into Federal Reserve Chairman Powell. According to sources, U.S. Attorney Jeanine Pirro's Washington office initiated the investigation, but did not notify the Treasury Department, senior White House officials, or the main Justice Department in advance. Another source stated that Bessent "believes that when the President appoints a new Fed Chair, Powell will leave. But now that's not going to happen. Now Powell's position is even stronger. This has really made a mess of things." However, sources said that during his conversation with Trump, Bessent did not question the necessity of investigating Powell, nor was he defending the Fed Chair.