Scott Bessent says Jerome Powell probe may be due to ‘inability to build’

US Treasury Secretary Scott Bessent told “Kudlow” on Friday that the investigation of Federal Reserve Chairman Jerome Powell may have been caused by “an inability to construct.”

“I don’t know anything about construction, it seems like there aren’t many people at the Fed,” he said.

A criminal investigation was launched against Powell to determine whether he lied to Congress about the scope of the renovations to the central bank’s headquarters in Washington. The Justice Department has threatened criminal charges related to Powell’s Senate testimony about the settlement.

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Although Bessent said he didn’t know much about the investigation, he said the Fed needs “a lot of work,” and an investigation into Powell could renew his policy of transparency at the agency.

“It needs a complete overhaul,” he told FOX Business host Larry Kudlow. “I was asking for an internal investigation or an internal review of all this, maybe this will push that idea forward.

“There is a great influence and impact on them [Americans’] life, but there is no accountability.”

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The treasury secretary reiterated President Donald Trump’s distaste for the economic leader.

“He has always expressed his disappointment with Chairman Powell,” Bessent said.

Powell described the investigation, which was authorized by US Attorney for the District of Columbia Jeanine Pirro, as “unprecedented” in a video message sent by the Fed.

Federal Reserve Chairman Jerome Powell arrives at the US Federal Reserve in Washington Jan. 13, 2026. (Nathan Howard/Reuters/Reuters)

“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether monetary policy will instead be guided by political pressure or intimidation,” Powell said in the video.

A staunch critic of Powell, Trump has repeatedly threatened to oust the chair and accused him of being a political operative despite the chairman’s role requiring a neutral stance.

Bessent continued to address the race to replace Powell, announcing that the final round of interviews had ended.

President Trump said on Friday that he would like Kevin Hassett to continue his job as director of the National Economic Council, effectively removing him from the race to succeed Powell.

“I actually want to keep you where you are, if you want to know the truth,” Trump said at the White House.

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National Economic Council Director Kevin Hassett looks on as US President Donald Trump speaks during a press briefing in the Oval Office of the White House on September 05, 2025 in Washington, DC. (Kevin Dietsch / Getty Images / Getty Images)

Many had considered Hassett the front-runner, but Bessent said the final choice rested with Trump.

“If that is the right of the president, then so be it,” he said.

Bessent told FOX Business that Trump does not confide in him about his decision-making process for the next Fed chairman.

“President Trump has never told me his thoughts,” he said. “What I can tell you is that he was very deliberate. He asked all the questions that I think you and I and the markets would like to ask..”

Scott Bessent, US Treasury Secretary, during the Economic Club of Minnesota event in Golden Valley, Minnesota, US, on Thursday, Jan. 8, 2026. (Photos by Ben Brewer/Bloomberg/Getty/Getty)

Bessent said the president is looking for someone who can bring order to the “escalating” Federal Reserve.

“Only the president knows. … It’s his prerogative. He’s been thinking about this almost since the first day of Trump 2.0,” he added.

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President Trump indicated that he will announce that he will replace Powell in January, and Besent indicated when that announcement could come.

“I was expecting that we would have a decision before he left for Davos or after he returned,” he said.