According to sources familiar with the matter, Treasury Secretary Bessent, during a private meeting with Senate Republicans on Wednesday, agreed with lawmakers' suggestions that the Senate Banking Committee, rather than the Department of Justice, should lead an investigation into Federal Reserve Chairman Powell.

One lawmaker who was part of the discussions interpreted the exchange as a trial balloon to see if such an arrangement would persuade Republican Senator Thom Tillis of North Carolina to lift his block on Fed nominees. "They are trying to throw this incentive to Tillis to see if he accepts it," the lawmaker said. "But Tillis remained expressionless throughout."

Others viewed the proposal as a potential compromise. A Republican congressman stated, "President Trump wants an investigation," adding that the hope is "the Banking Committee can fulfill that desire for an inquiry."

However, the first lawmaker expressed skepticism, remarking, "I would be very surprised if Tillis accepts this deal."

Senator Tillis's office declined to comment.

Last month, President Trump nominated former Fed Governor Kevin Warsh to replace Powell. Since then, Tillis has repeatedly stated he would assist in advancing Warsh's nomination process, but only if the Justice Department drops its investigation into Powell.

"Tillis's position is very clear and public: he will not vote for anyone as long as the investigation is ongoing," a second Republican congressman said. "Therefore, the only way to achieve our goal is to resolve this issue." The congressman added, "I do believe it might be appropriate for the committee to take on the responsibility of investigating the renovation controversy. I think it could be more suitable for the committee to handle this than for the Justice Department to get involved."

Yet the first lawmaker remained doubtful that Tillis would compromise. The source pointed out that the Fed's Inspector General is already conducting an internal review, which represents a more credible third party.

"Bessent emphasized at the retreat today that we want these hearings to happen as soon as possible so the new chairman can be ready to take office," the first lawmaker said. "I believe if the president wants to move quickly on this, he should call the U.S. Attorney and tell them directly to stand down."