Here’s a unique rewrite of the article, maintaining its core meaning while changing structure, vocabulary, and tone for increased engagement, and incorporating H2 and H3 tags:
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## Federal Reserve Faces Dual Challenges: A Criminal Probe and Leadership Transition
The U.S. central bank is currently navigating turbulent waters, grappling with an unprecedented criminal investigation into its top official, Jerome Powell, while simultaneously anticipating President Donald Trump’s decision on the next Federal Reserve Chair. Treasury Secretary Scott Bessent recently offered his perspective on both pressing issues, suggesting a broader need for transparency and reform within the institution.
### The Powell Investigation: “Construction Incompetence” or Deception?
Federal Reserve Chairman Jerome Powell finds himself at the center of a criminal inquiry initiated by the Department of Justice. The investigation seeks to determine if Powell provided false testimony to Congress concerning the extent of renovation projects at the central bank’s Washington headquarters. An indictment looms as a potential outcome, raising significant questions about the integrity of the Fed’s leadership.
#### Treasury Secretary Bessent’s Candid Assessment
Speaking on a recent broadcast of “Kudlow,” Treasury Secretary Scott Bessent weighed in on the probe, attributing it, in part, to what he termed “construction incompetence” within the Federal Reserve. He openly admitted his limited knowledge of construction but humorously suggested a similar deficiency might exist among Fed personnel. Bessent, while not possessing intimate details of the ongoing investigation, views the controversy as a potential catalyst for much-needed internal review.
#### Powell’s Stance: An “Unprecedented” Political Attack
In response to the mounting pressure, Chairman Powell released a video statement through the Fed, characterizing the investigation—approved by U.S. Attorney for the District of Columbia Jeanine Pirro—as “unprecedented.” He framed the inquiry as an attempt to politicize monetary policy, asserting that the Fed’s ability to set interest rates based on economic data, rather than political influence or intimidation, is at stake. This directly counters President Trump’s long-standing criticisms, as the President has frequently expressed disappointment with Powell, even threatening his removal, despite the traditionally non-partisan nature of the role.
### A Call for Central Bank Overhaul
Beyond the immediate concerns of the criminal probe, Secretary Bessent articulated a broader critique of the Federal Reserve, emphasizing its profound impact on Americans’ lives coupled with a perceived lack of accountability.
#### Demanding Greater Transparency and Internal Review
Bessent stated that the institution requires a “thorough overhaul,” reiterating his earlier calls for an extensive internal investigation or review. He expressed hope that the current legal scrutiny on Powell could advance this agenda, pushing for greater transparency in an organization that wields immense economic power.
### The Race for the Next Federal Reserve Chair
Amidst the controversies, the White House is nearing a decision on who will succeed Jerome Powell. Secretary Bessent confirmed that the final round of interviews for the coveted position has concluded, with President Trump meticulously weighing his options.
#### Trump’s Deliberate Selection Process
President Trump, according to Bessent, has been “very deliberate” in his search, asking precisely the kinds of questions that markets and the public would expect. While Bessent remains uninvolved in the specifics of the President’s decision-making, he confirmed that the ultimate choice rests solely with Trump, who has been considering this appointment since the outset of “Trump 2.0.” The President is reportedly seeking a leader capable of bringing order to the “sprawling” Federal Reserve.
#### Kevin Hassett Steps Aside
A significant development in the succession race came when President Trump publicly indicated his desire for Kevin Hassett to remain as the Director of the National Economic Council. This effectively removes Hassett, previously considered a frontrunner, from contention for the Fed Chairmanship. Bessent acknowledged this as the President’s prerogative.
The announcement regarding Powell’s replacement is anticipated in January, with Bessent suggesting it could occur either before or after Trump’s departure for Davos. The upcoming decision will undoubtedly shape the future direction of U.S. monetary policy and the leadership of one of the world’s most influential financial institutions.
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**Summarize the main points of this article:**
The article discusses two primary issues surrounding the Federal Reserve:
1. **Criminal Probe into Jerome Powell:** Fed Chair Jerome Powell is under criminal investigation by the Department of Justice for allegedly lying to Congress about headquarters renovations, a situation Treasury Secretary Scott Bessent attributes to “construction incompetence.” Powell himself views the probe as an “unprecedented” political attack aimed at undermining the Fed’s independence.
2. **Search for Powell’s Successor:** President Donald Trump is in the final stages of selecting the next Federal Reserve Chair, with interviews complete. Treasury Secretary Scott Bessent highlights Trump’s thorough and deliberate process, emphasizing the President’s desire for a leader who can bring order to the institution. A key development is Kevin Hassett, previously a strong contender, being asked by Trump to remain in his current role as National Economic Council director, removing him from consideration for the Fed Chair. The announcement is expected in January.
3. **Call for Fed Transparency and Overhaul:** Bessent uses the ongoing probe as an opportunity to reiterate his broader call for a “thorough overhaul” and increased transparency within the Federal Reserve, arguing that despite its immense influence, it lacks sufficient accountability.