Republican lawmakers speak out against the Justice Department’s Federal Reserve investigation

WASHINGTON — A growing list of Republicans, including two senators on the influential Senate Banking Committee, have spoken out against the Justice Department subpoenas of the Federal Reserve and warned that the probe could undermine the central bank’s independence.

Sen. Lisa Murkowski, R-Alaska, said in a statement that she spoke with Fed Chair Jerome Powell on Monday and that “it’s clear the administration’s investigation is nothing more than an attempt at coercion.”

“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,” she said in the statement.

“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.

Murkowski, a moderate, is one of the more frequent Republicans to buck the Trump administration, and Trump has criticized her for breaking with the party on issues such as advancing a war powers measure.

Tillis, a member of the Senate Banking Committee, accused the administration of undermining the Federal Reserve’s independence and vowed to block any Fed nominees “until this legal matter is fully resolved.”

“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,” Tillis said on X Sunday evening. “It is now the independence and credibility of the Department of Justice that are in question. 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 praised Tillis’ statement, saying that he was “right in blocking any Federal Reserve nominees until this is resolved.”

Cramer, who also sits on the Senate Banking Committee, said in a statement that he believes Powell “is a bad Fed Chair who has been elusive with Congress,” but added, “I do not believe however, he is a criminal.”

“I hope this criminal investigation can be put to rest quickly along with the remainder of Jerome Powell’s term,” Cramer said in a statement. “We need to restore confidence in the Fed.”

As members of the Banking Committee, Tillis and Cramer vote on whether or not to advance Federal Reserve nominees to a full Senate vote. The committee is comprised of 13 Republicans and 11 Democrats, meaning that Tillis could effectively stall Trump’s nominees if he sides with Democrats, bringing the voting margin to 12-12.

Sen. Roger Marshall, R-Kan., was asked in an interview with Fox Business on Monday whether he believed the probe was political. Marshall said that Trump was perhaps “almost trolling here,” adding, “we’ve got bigger issues to go after than this one.”

House Financial Services Committee Chair French Hill, R-Ark., defended Powell as “a person of the highest integrity” and warned that 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 and creates an unnecessary distraction,” Hill said in a statement. Hill’s committee oversees the Federal Reserve, the Treasury Department and the Securities and Exchange Commission.

Other Republicans were supportive of the investigation. Asked by NBC News whether the probe compromises the credibility and independence of the DOJ, House Speaker Mike Johnson, R-La., said, “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.”

On whether he personally thinks the investigation is warranted, Johnson said, “I have not reviewed his testimony, so I’m not sure, but that’s not really my lane.”

The White House and Justice Department did not immediately respond to requests for comment on Monday.

The White House on Sunday referred a request for comment on Tillis’ statement to the Justice Department. A Justice Department spokesperson on Sunday declined to comment on a specific case, but said that Attorney General Pam Bondi instructed her team “to prioritize investigating any abuse of taxpayer dollars.” The Federal Reserve is not funded through taxpayer dollars.

The Justice Department probe comes after months of pressure from administration officials and Trump himself for the Federal Reserve to lower interest rates further. The president has frequently lashed out at Powell in particular, calling him a “dummy” and “Too Late.” Trump nominated Powell to serve as Fed Chair in 2017.

Powell, in a video statement on Sunday, said that “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.”

Powell’s term as chair ends in May, but he has a seat on the Federal Reserve Board of Governors until 2028.

The Federal Reserve probe is only the latest in a series of actions that the DOJ has taken against frequent targets of Trump’s ire. The DOJ also indicted former FBI Director James Comey and New York Attorney General Letitia James following pressure from Trump, though both cases were dropped after the prosecutor was disqualified. Former national security adviser John Bolton, who became a vocal critic of the president after Trump’s first term, was also indicted in October.