Bessant alerts: Fed investigation could incite market chaos and keep Powell in his position

US Treasury Secretary Bessant warned Trump that the investigation into the Fed Chair could negatively impact the markets, describing the situation as a ‘mess’. Bessant is unhappy with how events are unfolding.

Trump is distancing himself from the investigation, which caught key officials off guard. Bessant had anticipated Powell’s departure with a new Fed chair’s appointment but now believes that is unlikely.