At a Glance
- Sens. Lisa Murkowski, Thom Tillis and Kevin Cramer warn DOJ subpoenas of the Federal Reserve threaten central-bank independence
- Tillis vows to block any Fed nominees, including the next chair, until the investigation ends
- Banking Committee math: a single GOP defection could stall Trump picks in the 13-11 Republican panel
- Why it matters: investors and lawmakers fear political meddling with the Fed could rattle markets and the broader economy
A wave of Republican senators is openly condemning the Justice Department’s subpoenas targeting Federal Reserve Chair Jerome Powell, calling the move an assault on the central bank’s independence that could rattle financial markets.
GOP Banking chiefs draw a line
Sen. Lisa Murkowski, R-Alaska, phoned Powell on Monday and later issued a blunt statement: “It’s clear the administration’s investigation is nothing more than an attempt at coercion.” She added that if building-cost overruns-cited as the probe’s focus-warrant a criminal inquiry, “then Congress needs to investigate the Department of Justice.”
Murkowski, who has repeatedly broken with the Trump administration, warned: “If the Federal Reserve loses its independence, the stability of our markets and the broader economy will suffer.”
Fellow Banking Committee member Thom Tillis, R-N.C., went further, pledging on social media Sunday to oppose confirmation of any Fed nominee “until this legal matter is fully resolved.” A vacancy at the chair looms; Powell’s term ends in May, though he remains a governor until 2028.
Tillis wrote: “If there were any remaining doubt whether advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none.”
Murkowski quickly praised Tillis’ stance, telling News Of Losangeles he is “right in blocking any Federal Reserve nominees until this is resolved.”
Inside the committee math
The Senate Banking Committee is composed of 13 Republicans and 11 Democrats. If Tillis sides with Democrats, the panel would deadlock 12-12, stalling any nominee before it reaches the Senate floor.
Sen. Kevin Cramer, R-N.D., also on the committee, labeled Powell “a bad Fed Chair who has been elusive with Congress,” but added, “I do not believe however, he is a criminal.” Cramer urged an end to the probe, saying: “We need to restore confidence in the Fed.”
Hill panels weigh in
House Financial Services Chair French Hill, R-Ark., whose committee oversees the Fed, called Powell “a person of the highest integrity” and said the subpoenas “could undermine this and future Administrations’ ability to make sound monetary policy decisions.”
“Pursuing criminal charges relating to his testimony on building renovations at a time when the nation’s economy requires focus… creates an unnecessary distraction,” Hill said in a statement.
Sen. Roger Marshall, R-Kan., told Fox Business the probe looks political, remarking Trump may be “almost trolling here” when “we’ve got bigger issues to go after than this one.”
Mixed GOP reaction
Not all Republicans share those concerns. Asked whether the investigation undermines DOJ credibility, House Speaker Mike Johnson, R-La., replied: “Of course not, no. They’re doing their job.”
Johnson called the allegations “serious” and said “if the investigation is warranted, then they’ll have to play that out.” He added he had not reviewed Powell’s testimony and that assessing the probe is “not really my lane.”
DOJ stays largely silent
The White House and Justice Department did not respond Monday to fresh inquiries. On Sunday the White House referred questions to DOJ, where a spokesperson declined to address the specifics but noted Attorney General Pam Bondi “instructed her team to prioritize investigating any abuse of taxpayer dollars.” The Federal Reserve is not taxpayer-funded.
Context of the clash
The subpoenas arrive after months of public pressure from Trump and senior aides for the Fed to cut interest rates more aggressively. Trump once nominated Powell but has since labeled him a “dummy” and “Too Late.”
In a Sunday video, Powell said: “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President.”
Broader pattern
The Fed probe is one of several Justice Department actions against figures who have drawn Trump’s ire. Former FBI Director James Comey and New York Attorney General Letitia James were indicted following Trump complaints; both cases were later dropped after the assigned prosecutor was disqualified. Former national security adviser John Bolton was indicted in October.
Key Takeaways
- Senior Republicans on the Senate Banking panel are aligning to defend Fed independence
- A single GOP defection could freeze Trump’s future Fed picks
- The dispute injects fresh uncertainty into rate-policy outlook as Powell’s chair term nears its end
