By Chinonyerem Ogbonna
Republican frustration is boiling over on Capitol Hill as a growing number of GOP lawmakers openly rebuke the Trump administration’s Department of Justice for launching a criminal investigation into Federal Reserve Chair Jerome Powellan, extraordinary move that critics warn could jeopardize the central bank’s independence and rattle financial markets.
The controversy burst into public view Sunday night, when Powell disclosed that the Justice Department is investigating his role in overseeing renovations to the Federal Reserve’s headquarters, as well as his related testimony before Congress.
Powell framed the probe as a clear attempt at political intimidation, arguing it coincides with mounting pressure from President Donald Trump to slash interest rates at a faster pace than Powell believes is economically prudent.
What began as a simmering dispute has now escalated into open Republican resistance—resistance that could seriously complicate Trump’s plans to reshape the Federal Reserve once Powell’s term as chair expires in May.
At the center of the pushback is Sen. Thom Tillis of North Carolina, a Republican member of the powerful Senate Banking Committee. Tillis has vowed to block any Federal Reserve nominees until the investigation into
Powell is resolved, a threat that carries real weight in a narrowly divided committee made up of 13 Republicans and 11 Democrats. With margins that tight, a single GOP defection is enough to stall a nomination indefinitely.
Tillis’ stance is no longer isolated. Other Republicans are now echoing his concerns, transforming what might have been an internal disagreement into a full-blown intraparty clash.
Sen. Lisa Murkowski of Alaska was among the most forceful voices, calling the Justice Department’s actions “nothing more than an attempt at coercion.” In a post on X, Murkowski went further, urging Congress itself to investigate the Justice Department’s conduct.
“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,” Murkowski said.
“The stakes are too high to look the other way. If the Federal Reserve loses its independence, the stability of our markets and the broader economy will suffer.” She added that Tillis was right to block any Fed nominees until the matter is resolved.
The growing GOP backlash poses a serious dilemma for Trump, who has long made no secret of his desire to remove Powell and install a more compliant ally at the helm of the central bank. Trump has repeatedly said he plans to replace Powell when his term as chair ends in May, though Powell could remain on the Fed’s Board of Governors until 2028 if he chooses.
Complicating matters further, the criticism is not limited to Powell’s defenders. Even some Republicans who have frequently sparred with the Fed chair are drawing a line at criminal prosecution.
House Financial Services Committee Chair French Hill, a Republican from Arkansas, warned that pursuing criminal charges tied to Powell’s congressional testimony over building renovations is a dangerous distraction at a time when economic focus is critical.
Source: CNBC
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