Here’s what happened within the White House walls.
Treasury Secretary Scott Bessent appeared to distance himself from reports suggesting he privately clashed with President Donald Trump over a Justice Department inquiry involving Federal Reserve Chair Jerome Powell, raising new questions about internal tensions within the administration.
During a Sunday appearance on NBC’s Meet the Press, host Kristen Welker asked Bessent about a recent Axios report claiming the treasury secretary was “perturbed” by the DOJ’s investigation and warned President Trump it could unsettle financial markets.
Welker cited unnamed sources who alleged Bessent told the president that the probe “made a mess” and could negatively affect investor confidence. She then asked Bessent directly whether the report accurately reflected his comments.
Bessent declined to discuss private conversations with the president. However, he added an unexpected caveat.
“If I said that,” Bessent remarked, “I was wrong.”
The treasury secretary went on to argue that market behavior tells a different story than the report suggested. He noted that stock markets rose, bond yields declined, and recent U.S. Treasury bond auctions performed strongly—indicators he said point to investor confidence rather than concern.
According to Bessent, financial markets ultimately determine whether the Federal Reserve’s independence is being threatened, and recent data suggests investors are largely unfazed. He also suggested that some market participants may welcome greater transparency from the central bank.
Earlier in the interview, Welker pressed Bessent on whether President Trump genuinely supports an independent Federal Reserve.
Bessent responded that the president does support independence—but emphasized that independence does not eliminate the need for oversight.
When asked whether a Justice Department inquiry could undermine the Fed’s autonomy, Bessent pushed back, contrasting the Fed’s spending practices with those of traditional government agencies. He argued that while departments like Treasury operate under congressional appropriations, the Federal Reserve effectively finances itself.
Bessent also revealed that he has been calling since last summer for the Fed to conduct its own internal review—requests he says have gone unanswered. He added that if he personally received inquiries from the Department of Justice, he would respond promptly.
The exchange has fueled speculation about whether Bessent is attempting to walk back earlier comments, manage media narratives, or simply reinforce the administration’s broader push for accountability at powerful institutions.
At a time when oversight of the Federal Reserve remains a politically sensitive issue, the interview highlights ongoing debates inside Washington over transparency, authority, and the balance of power between elected leaders and unelected officials.
