Republicans are now openly turning on the Justice Department after it moved against the Federal Reserve chair.
The fight centers on Jerome Powell, the head of the Federal Reserve, and a criminal probe announced under the Trump administration. The move shocked lawmakers from both parties and set off a loud backlash inside Congress.
Alaska Senator Lisa Murkowski led the charge. She called the DOJ action a pressure tactic meant to force the Fed to lower interest rates. After speaking directly with Powell, she said the investigation looks political, not legal.
She was not alone.
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North Carolina Senator Thom Tillis joined her and said he would block any new Federal Reserve nominees from the White House. Other lawmakers quickly followed. The message was blunt. Do not touch the Fed.
The dispute exploded after Powell revealed that the DOJ had sent grand jury subpoenas to the Federal Reserve. The threat focused on his testimony to Congress last June about renovation costs at the Fed’s Washington headquarters.
Powell pushed back hard.
He said the legal threat had nothing to do with buildings or budgets. He said it was a punishment for refusing to bend interest rates to presidential demands.
“This new threat is not about my testimony,” Powell said. “Those are pretexts.”
Lawmakers say the numbers do not justify criminal action. The renovation project rose from $1.9 B in 2019 to about $2.5 B in the 2025 budget. Powell said the project will save money long term by combining offices and cutting future costs.
Murkowski said cost overruns happen in large federal projects and do not explain a criminal probe. She said if wrongdoing exists, Congress should investigate the DOJ itself.
The clash has been building for over a year.
Trump has repeatedly attacked Powell by name. He mocked him. He insulted him. He blamed him for interest rates staying higher than he wants.
Trump even floated removing Powell before his term ends.
That threat alarmed economists and lawmakers. The Federal Reserve is designed to operate without White House control. Many see this probe as a direct hit on that independence.
Former Fed chair Janet Yellen backed Powell’s warning. She said the investigation looks like an attempt to weaken the Fed and steer rates for political gain.
Democrats also jumped in. Senator Elizabeth Warren said Trump is abusing the law to benefit himself and wealthy allies. Senator Mark Warner said the attack fits a pattern of chaos and power grabbing.
The Fed has already cut rates three times. Each cut was 0.25 %. The current rate now sits between 3.50 % and 3.75 %.
Featured image via Political Tribune Gallery
