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According to Axios, Bessent’s concerns about the financial impact partially materialized on Monday, as political interference in the Fed led to higher bond yields and gold prices while the dollar weakened.

The office of US prosecutor Jeanine Pirro in Washington announced that the investigation was launched without prior notification to the Treasury Department, senior White House officials, or the Department of Justice.

Powell said in a statement issued late Sunday that he had committed no wrongdoing and claimed that the Trump administration was using the Department of Justice as a weapon because he did not support interest rate cuts to the extent or at the pace Trump wanted.

Powell said, “Threats of criminal charges are the result of the Federal Reserve setting interest rates based on the best assessment of what serves the public interest, rather than following the President’s preferences.”

According to Axios sources, Bessent’s concerns about the investigation are not based solely on financial markets. Powell’s term as chair ends in May, and the administration had hoped he would step down earlier once Trump nominated a replacement.

A spokesperson for the US Treasury Department also told Axios, “There is no disagreement between Secretary Bessent and President Trump. The sources in the report are not speaking on behalf of the secretary.” According to the sources, Bessent did not question the necessity of the investigation into Powell and did not defend the Fed chair in his conversation with Trump.