The simmering tension between the Trump administration and the Federal Reserve boiled over on national television Sunday, with Treasury Secretary Scott Bessent defending a Justice Department probe into the central bank’s spending habits while insisting the White House still respects monetary policy independence.
During a contentious segment on NBC’s Meet the Press, moderator Kristen Welker pressed Bessent on whether the administration is attempting to strong-arm the Fed. The questions follow revelations that the Department of Justice is investigating Federal Reserve Chair Jerome Powell and the board regarding alleged budget overruns during headquarters renovations.
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Powell has vehemently pushed back against the probe. In a clip aired during the broadcast, the Fed Chair characterized the investigation as a thinly veiled attempt to politicize the central bank.
“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions,” Powell said in the recording, “or whether instead monetary policy will be directed by political pressure or intimidation.”
When asked if the President remains committed to the Fed’s traditional autonomy, Bessent offered a qualified defense. “Of course, he’s committed to the independence of the Federal Reserve,” Bessent told Welker. “But independence does not mean no oversight.”
Welker challenged the Secretary, suggesting that a criminal investigation into building renovations might undercut the Fed’s ability to operate without fear of retribution. Bessent dismissed the comparison to standard government operations, drawing a sharp distinction between how the Treasury spends money versus the Federal Reserve.
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“Just to understand, the Federal Reserve has magic money. They print their own money,” Bessent argued. “So when you have no oversight, why not have a little sunlight?”
Bessent alleged that the renovation costs have spiraled out of control, citing figures ranging from $700 million to $1.5 billion over budget. He contrasted this with White House renovations, which he noted are often paid for with private funds, and Treasury expenses, which require congressional appropriation.
The Treasury Secretary also suggested the Justice Department’s involvement was a result of the Fed’s lack of transparency. Bessent claimed he had called for an internal investigation as early as last summer, but those requests—and subsequent inquiries from the DOJ—were ignored.
“If I were to receive inquiries from the Justice Department, I would answer them,” Bessent said. “They went unanswered.”
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