Top Republicans are raising alarms about the justice department’s criminal investigation into Jerome Powell, the chair of the Federal Reserve.
Powell, who has faced multiple criticisms from President Trump in the past, revealed on Sunday that he is at the center of an investigation regarding the $2.5 billion renovation of the bank’s headquarters in Washington.
He suggested this was a cover and that the administration aimed to exert “political pressure or intimidation” to compromise the independence of the bank.
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“No one, certainly not the chair of the Federal Reserve, is above the law, but this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure,” Powell stated.
Powell’s term as chair ends in May. However, he can stay on as a governor until 2028 if he chooses to do so.
President Trump has previously criticized Powell for being “slow” to cut interest rates, labeling him as “Mr Too Late” and “a stupid person” during a year-long campaign against him.
Nonetheless, Trump has denied any role in this investigation. “I don’t know anything about it,” he told NBC on Sunday while adding: “But he’s certainly not very good at the Fed, and he’s not very good at building buildings.”
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High-ranking Republicans on Capitol Hill have since shared serious concerns about this probe. Reports suggest that senior figures within Trump’s administration have echoed these worries privately, including Scott Bessent, Treasury Secretary, who informed Trump that this investigation “made a mess” and could harm financial markets.
Trump mentioned that he’s already chosen someone to replace Powell when his term concludes in May. Bessent expressed concerns about how this investigation might affect Senate confirmation for Trump’s nominee.
John Kennedy, a Republican senator from Louisiana and member of the banking committee, remarked that this conflict would lead to higher interest rates. “We need this like we need a hole in the head,” he commented.
Jerome Powell and President Trump tour the Federal Reserve board building during renovations last year
KENT NISHIMURA/REUTERS
Thom Tillis, another Republican senator on the banking committee, quickly stated he’d oppose any nominee until matters were “fully resolved,” with several colleagues joining him in agreement.
“If there were any remaining doubt whether advisers within Trump’s administration are actively pushing to end Federal Reserve independence, there should now be none. It is now both independence and credibility of DOJ that are under scrutiny,” Tillis added.
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Other Republican members from banking committee also voiced skepticism about this investigation. Cynthia Lummis previously critical of Powell noted that she thought it appeared to be quite an uphill battle.
Kevin Cramer , another Republican senator , said : ” Jerome P owell is a bad Fed chair who has been elusive with Congress , especially regarding overrun costs related to elaborate renovations. ”
He added : ” I do not believe however , h e is a c r i m i n al. I hope t h i s c r i m i n al inves t igation c an b e put t o rest quickly along with r emainder o f J e rome P owell ’s term. We need t o restore confidence i n t h e F ed. ”
John Th une , s enate ma jority leader , said h e hoped f or a swift resolution. ” I think it ’s really important t hat it can resolve quickly and t hat there no appearance o f political interference w ith F ed or its activities , ” h e said.
R ep ublicans have a majori ty o f 53 -47 in senate which means only few senators would b e needed t o block T rump ’s pick f or successor t o P ow ell.
Criticism o f th e probe from congressional R ep ublicans also extended t o House. French H ill , chairman o f House’ s financial services committee described P ow ell as person “o f highest integrity” on Monday.
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