Bessent says Powell attending Supreme Court arguments on Lisa Cook is a mistake

• Powell plans to attend Supreme Court arguments challenging Trump's authority to remove Fed Governor Lisa Cook, who Trump claimed to fire in August but remains in her position
• Bessent stated Powell's attendance would be 'putting his thumb on the scale' and contradicts efforts to keep the Fed non-political
• The dispute occurs as Powell disclosed he is under criminal investigation, which he characterized as based on 'pretexts' unrelated to legitimate oversight

Summary

Key Development: Treasury Secretary Scott Bessent criticized Federal Reserve Chair Jerome Powell's decision to attend Supreme Court oral arguments regarding President Trump's attempt to remove Fed Governor Lisa Cook, calling it "a mistake" that politicizes the central bank.

Main Figures:

• Scott Bessent - U.S. Treasury Secretary, speaking from the World Economic Forum in Davos, Switzerland
• Jerome Powell - Federal Reserve Chair, planning to attend the Supreme Court proceedings
• Lisa Cook - Federal Reserve Governor facing removal attempt
• Donald Trump - President seeking to fire Cook

Background: Trump announced in August his intention to fire Cook from the Fed's board over mortgage fraud allegations, though she remains in her position. Trump has also previously threatened to remove Powell. The Supreme Court case will determine the president's authority to remove Fed governors.

Political Tensions: The controversy intensifies amid Powell's rare public video statement revealing he is under criminal investigation. Powell characterized the investigation as using "pretexts" unrelated to legitimate oversight, denying it concerns his congressional testimony or Fed building renovations.

Bessent's Position: The Treasury Secretary argued that Powell's attendance at the Supreme Court arguments represents an attempt to "put his thumb on the scale," contradicting efforts to keep the Fed apolitical and independent.

Market Implications: The dispute highlights mounting tensions between the Trump administration and the Federal Reserve leadership, potentially affecting market confidence in central bank independence—a critical factor for monetary policy credibility and financial stability.