Trump would decide whether to investigate Fed pick Warsh over refusal to cut rates: Bessent

Trump would decide whether to investigate Fed pick Warsh over refusal to cut rates: Bessent

Published Thu, Feb 5 2026

1:00 PM EST

Updated 27 Min Ago

Key Points

• Under questioning from Sen. Elizabeth Warren, Treasury Secretary Scott Bessent would not rule out the potential for a DOJ investigation into Federal Reserve Chair nominee Kevin Warsh over interest rates.
• Bessent was on the Hill for the second consecutive day Thursday after House Democrats hammered him on inflation, Fed independence and cryptocurrency regulation on Wednesday.
• The DOJ's investigation into current Federal Reserve Chair Jerome Powell has raised questions about the independence of the country's central bank.

Sen. Elizabeth Warren (L), and Treasury Secretary Scott Bessent during a Senate Banking Committee hearing on Feb. 5th, 2026.

Getty Images | Reuters

Treasury Secretary Scott Bessent on Thursday refused to rule out the possibility of a criminal investigation of Kevin Warsh, President Donald Trump's nominee for Federal Reserve chair, if Warsh ends up refusing to cut interest rates.

Sen. Elizabeth Warren of Massachusetts, the top Democrat on the Senate Banking, Housing and Urban Affairs Committee, questioned Bessent about a joke Trump made over the weekend about suing Warsh if he does not reduce rates to the president's liking, according to The Wall Street Journal.

"I think it was a joke, but just in case, this should be an easy one, Mr. Secretary: can you commit right here and now that Trump's Fed nominee Kevin Warsh will not be sued, will not be investigated by the Department of Justice if he doesn't cut interest rates exactly the way that Donald Trump wants?" Warren asked. 

"That is up to the president," Bessent said, as the questioning devolved into cross talk.

U.S. presidents typically leave interest rate decisions up to the Fed, with a metaphorical firewall between the independent board and the White House.

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Bessent declines to say Trump DOJ won't sue Warsh over interest rates: 'That is up to the president'

Bessent's testimony before the Senate committee was his second appearance on Capitol Hill in as many days. On Wednesday, he was grilled by Democrats during a contentious hearing of the House Financial Services Committee. Democrats there pressed Bessent on tariffs and inflation, regulation of cryptocurrencies, and the independence of the Federal Reserve, a hot-button issue.

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Trump in recent months has targeted Federal Reserve Chair Jerome Powell over his refusal to lower interest rates to the president's liking. Powell on Jan. 11 revealed he was the subject of an unprecedented investigation by the Department of Justice relating to cost overruns on the renovation of the Federal Reserve headquarters.

Trump critics have characterized the investigation, which is based in part on testimony Powell gave to the Senate banking committee last year, as a thinly veiled attempt to strong arm the independent central bank.

Committee Chair Tim Scott, R-S.C., said this week he does not believe Powell committed a crime in his testimony. And Sen. Thom Tillis, R-N.C., a member of the committee, has vowed to block the nomination of Warsh, unless the probe into Powell is dropped. Powell's term as chairman ends in May. Trump, meanwhile, doubled down on the investigation earlier this week.

Warren and her Democratic colleagues on the committee have also called on Scott to hold up Warsh's nomination until the probes into Powell and Federal Reserve Board Governor Lisa Cook -- who is being investigated for alleged mortgage fraud -- are ended.

"Donald Trump has been trying to take over the Fed for months and months now," Warren said before Thursday's hearing. "He's threatened to fire Jerome Powell. He started a bogus criminal investigation against him. He started a bogus investigation trying to fire Lisa Cook, and now he wants to appoint his man who's going to do exactly what he says at the Fed."

"That's a takeover," Warren continued.

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