U.S. Treasury Secretary Scott Bessent defended the Department of Justice’s ongoing investigation into Federal Reserve Chair Jerome Powell, asserting that accountability is essential even for independent institutions. In an interview with CBS News on Wednesday, Bessent emphasized that Federal Reserve officials must maintain a standard of conduct that is “beyond reproach” when communicating with the public.
The investigation centers around Powell’s testimony before a Senate committee in June 2025, which pertains to a project involving the renovation of several Federal Reserve office buildings in Washington, D.C.. Earlier this month, the DOJ issued grand jury subpoenas related to this criminal probe, prompting discussions about the implications for the central bank’s independence.
Bessent stated, “I think that the message is that independence does not mean no accountability.” He has been advocating for an internal investigation by the Federal Reserve since last spring, which he claims has not been addressed. His remarks reflect concerns about oversight and transparency in the Federal Reserve, an institution often regarded as one of the most powerful and unappointed entities in the U.S. government.
Critics, including officials from the previous administration, have raised alarms over the escalating costs associated with the renovation project. While they argue that these costs are excessive, Powell has pushed back against claims of cost overruns, framing the DOJ’s investigation as an attempt to exert pressure on the central bank regarding its monetary policy decisions, particularly in relation to interest rates.
Bessent highlighted the need for high standards of accountability, likening the Federal Reserve’s financial practices to a system where it can “just print magic money.” He remarked, “If they overspend on our buildings, $700 million, $1 billion, $1.5 billion, they just print magic money.” His comments underscore a growing sentiment that the Federal Reserve must justify its expenditures and decision-making processes to the public.
The investigation has sparked a broader conversation about the balance between independence and accountability for major financial institutions. Bessent’s assertion that the Federal Reserve must be transparent and accountable is a reminder of the scrutiny that government agencies face, especially in the wake of significant financial decisions that impact the economy.
For more insights, viewers are encouraged to watch the full interview with Scott Bessent on CBS Evening News with Tony Dokoupil. The ongoing discourse surrounding the Federal Reserve and its operations continues to unfold, with implications for fiscal policy and public trust in governmental institutions.
