There’s pushback coming from both sides of the aisle amid the Trump administration’s investigation into the Federal Reserve and its chair, Jerome Powell. Several Republican lawmakers have now spoken out against the investigation, warning it could undermine the central bank’s independence.
The Department of Justice subpoenaed the central bank Friday with the threat of a criminal indictment.
Download the SAN app today to stay up-to-date with Unbiased. Straight Facts™.
Point phone camera here
What Republicans are saying
Sen. Thom Tillis, R-N.C., wrote on social media, “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.”
Sen. Lisa Murkowski, R-Alaska, said Monday she spoke with Powell and called the investigation “nothing more than an attempt at coercion.”
Murkowski added, “If the Department of Justice believes an investigation into Chair Powell is warranted based on project cost overruns — which are not unusual — then Congress needs to investigate the Department of Justice.”
House Financial Services Committee Chair French Hill, R-Ark., warned the investigation “could undermine this and future Administrations’ ability to make sound monetary policy decisions.”
Tillis also said, “I will oppose the confirmation of any nominee for the Fed—including the upcoming Fed Chair vacancy—until this legal matter is fully resolved.”
Murkowski backed that, saying, “My colleague, Senator Tillis, is right in blocking any Federal Reserve nominees until this is resolved.”
Powell’s term as chair is set to end in May.
Even President Donald Trump’s Treasury Secretary, Scott Bessent, has privately expressed unhappiness with the decision to open a criminal investigation into Powell, according to CNN.
The report says Bessent is concerned the probe could rattle financial markets.
Unbiased. Straight Facts.TM
The Federal Reserve’s renovations are slated to cost a total of $2.5 billion by the time they’re complete in 2027.
A group of global bankers is also backing Powell. In a joint a statement, the heads of 12 central banks said, “We stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell.”
“Chair Powell has served with integrity, focused on his mandate and an unwavering commitment to the public interest. To us, he is a respected colleague who is held in the highest regard by all who have worked with him,” they added.
The joint statement also addressed concerns over how the probe could threaten the Fed’s independence. It read, “The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve. It is therefore critical to preserve that independence, with full respect for the rule of law and democratic accountability.”
The crux of the investigation
The investigation centers on testimony Powell gave over the summer about a multi-year renovation of the Federal Reserve’s headquarters.
The project has drawn increasing scrutiny from the Trump administration. Office of Management and Budget chair Russell Vought has accused Powell of overseeing what he calls an “ostentatious” renovation that could be “violating the law.”
In a video statement Sunday night, Powell claimed the DOJ’s investigation is really about more than “just building upgrades.”
This story is featured in today’s Unbiased Updates. Watch the full episode here.
“This unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure,” Powell said. “This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. It is not about Congress’s oversight role. Those are pretexts. 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.”
In the past, Trump has signaled the possibility of legal action against Powell.
“We’re thinking about bringing a suit against Powell for incompetence,” he said in December while discussing the cost of the renovations.
U.S. Attorney Jeanine Pirro, whose office is spearheading the probe, said in a post on X Monday, “The United States Attorney’s Office contacted the Federal Reserve on multiple occasions to discuss cost overruns and the chairman’s congressional testimony, but were ignored, necessitating the use of legal process—which is not a threat.”
Trump says he wasn’t involved
President Trump denies ordering the investigation, despite the comments he made in December.
“I don’t know anything about it, but he’s certainly not very good at the Fed, and he’s not very good at building buildings,” Trump told NBC News Sunday.
White House Press Secretary Karoline Leavitt repeated that on Monday, saying, “One thing for sure, the president’s made it quite clear, is Jerome Powell is bad at his job. As for whether or not Jerome Powell is a criminal, that’s an answer the Department of Justice is going to have to find out.”
Trump did, however, reprise his calls for Powell’s ouster after December inflation numbers were released on Tuesday.
“JUST OUT: Great (LOW!) Inflation numbers for the USA. That means that Jerome “Too Late” Powell should cut interest rates, MEANINGFULLY!!! If he doesn’t he will just continue to be, “TOO LATE!” he said in a post on Truth Social.
