Jeffrey Kessler Emerges as Fall Guy in Megaspeed-Nvidia Probe Scandal, as Lutnick Keeps Trump's Backing
Updated
Updated · POLITICO · Nov 13
Jeffrey Kessler Emerges as Fall Guy in Megaspeed-Nvidia Probe Scandal, as Lutnick Keeps Trump's Backing
1 articles · Updated · POLITICO · Nov 13
Summary
Jeffrey Kessler, the Commerce undersecretary overseeing export controls, is being viewed by current and former officials as the likely casualty of the Megaspeed-Nvidia scandal.
The pressure centers on reports that Kessler halted a Megaspeed investigation after Nvidia intervened, even as critics say his office has long slowed efforts to police chip flows to China.
Several former officials argue Kessler had limited independent authority because Howard Lutnick kept unusually tight control, with one saying subordinates needed his written consent for decisions.
Trump still has "complete confidence" in Lutnick, according to a White House official, underscoring why some in and around Commerce expect blame to fall below the secretary.
That dynamic is reinforced by Lutnick's decades-long friendship with Trump, which allies say helped him survive earlier backlash over the 2025 "Liberation Day" tariffs.