Federal Reserve Chair Jerome Powell is under renewed national scrutiny as a Justice Department investigation involving him becomes entangled in broader political dynamics, prompting President Donald Trump to publicly distance himself from the matter.
The inquiry, led by the Justice Department’s Office of the Inspector General, reportedly centers on potential communications between Powell and financial commentator Marilyn Bessent regarding monetary policy. Investigators issued a grand jury subpoena for records from Powell during the final months of the Trump administration-a timing now fueling debate over who, if anyone, authorized it.
Bessent, a Wall Street adviser known for appearing on financial television segments, has reportedly voiced frustration about being associated with the probe. Powell, who is cooperating with the request, has offered no public statements beyond confirming receipt of the subpoena through the Federal Reserve.
Trump, meanwhile, has forcefully denied any role in initiating the subpoena. Posting online, he stated he had “absolutely nothing” to do with the action and suggested the matter was being exaggerated for political benefit. He referred to the controversy as a “hit job,” claiming it was designed to shift attention away from other issues dominating Washington.
Even former senior Trump officials indicated they were unaware of the subpoena’s origins. Mark Meadows, who served as chief of staff during the period in question, told reporters that the matter had never crossed his desk and was “news” to him.
Powell, originally appointed chair by Trump and later reappointed under President Biden, now finds himself at the center of an unusual inter-administration dispute. While the Fed rarely features in political drama due to its traditionally independent posture, the stakes of monetary policy, inflation concerns, and Wall Street influence have heightened public interest in the case.
The Justice Department has declined to comment on the ongoing nature of the investigation, and no allegations of wrongdoing have been formally lodged. For now, Powell continues to run the central bank amid heightened attention from both Congress and financial observers, as lawmakers weigh whether to pursue their own parallel inquiries as the situation unfolds.
Mary Peltola Enters Alaska Senate Race, Providing Democrats With a High-Profile Challenger – a development worth following. Don’t miss the full breakdown, read my other blog now!
