Treasury Secretary Scott Bessent says it would be “up to the president” to decide whether or not to sue , Donald Trump’s nominee to lead the Federal Reserve, if he .
At a private black-tie dinner for the exclusive Alfalfa Club on Saturday evening, Trump stated he could sue his newly chosen if the individual failed to reduce interest rates. When reporters asked him about the comment later that night, Trump clarified it was a joke. “It was a roast,” Trump said. “Everything was in good humor.”
However, Massachusetts Democratic Senator Elizabeth Warren—ranking member of the Senate Banking Committee—questioned Bessent about Trump’s comments during a Wednesday committee hearing. This comes on the heels of the unprecedented attacks and legal probe the administration has directed at current Federal Reserve Chair Jerome Powell.
Trump tapped Powell for the role in 2017, but grew critical of him after Powell hiked interest rates the next year.
Since returning to the White House last year, Trump has repeatedly slammed Powell. Last month, Powell disclosed that the Department of Justice had issued a subpoena to the Fed as part of an investigation into Powell’s June Senate testimony regarding the Fed’s $2.5 billion building renovation project.
The investigation has sparked concerns among certain Senate Republicans regarding the Trump administration’s readiness to undermine the Fed’s longstanding independence from daily political interference. North Carolina Republican Senator Thom Tillis—who is retiring at the end of this year—stated he will not vote to confirm Warsh until the Powell investigation is resolved. Without Tillis’ backing, Warsh’s nomination may be delayed in the committee.
During the hearing, Warren asked Bessent to guarantee that Warsh would not face a lawsuit or Justice Department investigation if he fails to lower interest rates.
“That decision rests with the president,” Bessent replied. The two then began talking over each other, with Bessent emphasizing the president’s comments were in jest.
“That was supposed to be an easy question!” Warren exclaimed in surprise.
Later, when asked about Bessent’s comments regarding Trump potentially suing Warsh, Tillis stated: “Even acknowledging that this could occur and that it’s not a problematic idea is concerning to me.”
During the hearing, Tillis presented a list of committee members who stated they saw no criminal intent on Powell’s part.
“I was actually a witness at the supposed scene of the crime,” Tillis said during the hearing, adding, “we didn’t observe any crime.”
On Wednesday, South Carolina Republican Senator Tim Scott—chair of the Senate Banking Committee—also distanced himself from the Trump administration and told Business: “Being inept or incompetent is not a criminal offense.”
This marked the second straight day of hearings for Bessent focused on the annual report from the Financial Stability Oversight Council.
Bessent’s initial hearing with the House Financial Services Committee saw him clash with Democratic lawmakers over fiscal policy, the Trump family’s business activities, and other matters.
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Associated Press journalist Joey Cappelletti contributed to this report.