A rogue federal inquiry is triggering ripple effects across U.S. financial leadership. Sources reveal Treasury Secretary Besent delivered an urgent weekend warning to President Trump: the investigation into Fed Chair Powell has spiraled out of control, risking global market instability.
Probe Lacked High-Level Coordination
The probe was initiated by federal prosecutor Jeanine Pirro in Washington, yet shockingly, neither the Treasury, White House inner circle, nor the main Justice Department were consulted. This procedural breach has raised serious concerns over executive overreach and policy chaos.
Insiders confirm Besent did not challenge the rationale for scrutinizing Powell, nor did he defend the Fed chair. However, he voiced clear frustration: ‘This isn’t reform—it’s manufacturing a crisis.’
Powell’s Position Unexpectedly Strengthens
- Initial plans assumed Powell would exit quietly upon a successor’s appointment
- Current scrutiny has rallied market support for his independence
- Internal Fed cohesion has deepened, with a firmer policy stance emerging
‘Powell is no longer a passive figure,’ said a Treasury-adjacent source. ‘He’s now framed as a guardian of institutional integrity—the probe backfired, elevating his standing.’
As market anxiety over policy uncertainty grows, Wall Street is reassessing the Fed’s future trajectory. Besent’s intervention may be the crucial step to prevent broader financial fallout.