It’s Almost Trolling: Republican Lawmakers Aren’t Joining Trump’s Latest Move

WASHINGTON – Republican lawmakers are coming to the defense of Federal Reserve Chair Jerome Powell following the opening of an unprecedented criminal investigation into Powell by President Donald Trump’s Justice Department over the weekend.

Sen. Thom Tillis (R-N.C.) suggested the investigation into renovations at the Federal Reserve headquarters is politically motivated and threatened to oppose Trump’s nominees for the central bank until the matter is resolved.

“If there was any doubt about whether advisors within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none,” Tillis said in a statement on Sunday. “What is now in question is the independence and credibility of the Department of Justice.”

As a member of the Senate Banking Committee, where Republicans hold a 13-11 majority, Tillis’ vote is critical for any nomination to reach the Senate floor.

Sen. Lisa Murkowski (R-Alaska) also said it is “clear” that the investigation “is nothing more than an attempt at coercion” by the White House, adding that Congress should investigate the Justice Department if it does not drop the investigation.

“If the Justice Department believes an investigation into Chairman Powell is warranted due to project cost overruns – which is not unusual – then Congress needs to investigate the Justice Department,” Murkowski said. “There is too much at stake to look the other way: if the Federal Reserve loses its independence, the stability of our markets and the broader economy will suffer.”

Trump appointed Powell as chairman of the Federal Reserve in 2017, with his term set to expire in May 2026. However, the chairman has angered Powell for months, publicly pressuring him to cut interest rates before the midterm elections and to resign as chairman, a break with decades of central bank independence.

AP Photo/Jacquelyn Martin

Sen. Kevin Cramer (R.N.D.), another member of the Senate Banking Committee, called Powell a “bad” Federal Reserve chair, citing his handling of monetary policy during the COVID-19 pandemic and President Joe Biden’s administration.

“I don’t think he’s a criminal, though,” Cramer told CNBC. “I hope this criminal investigation can be concluded quickly along with the remainder of Jerome Powell’s term.”

Meanwhile, Sen. Roger Marshall (R-Kan.) appeared to dismiss the investigation during an interview with News Business.

“I think this is the president throwing in one more; maybe I’m almost trolling here,” Marshall told the outlet. “However, we have bigger problems than this.”

The cost of renovating the Federal Reserve headquarters in Washington rose from $1.9 billion to $2.5 billion. Powell said scrutiny of the project is legitimate, but called the issue a “pretext” to destroy the independence of the Federal Reserve.

“This new threat has nothing to do with my testimony last June or the renovation of the Federal Reserve buildings,” Powell said in an extraordinary video message he posted online on Sunday. “This is not about Congress’s oversight role; the Federal Reserve, through testimony and other public disclosures, went to great lengths to keep Congress informed about the renewal project. Those are pretexts. The threat of criminal charges is a consequence of the Fed setting interest rates based on our best assessment of what will serve the public, rather than following the president’s preferences.”

Sen. Elizabeth Warren (D-Mass.), the ranking Democrat on the banking committee, warned that Trump is planning to “install another puppet to complete his corrupt takeover of the U.S. central bank.”

“Trump is abusing the authorities of the Department of Justice like a would-be dictator so that the Federal Reserve serves his interests, along with those of his billionaire friends,” Warren said in a statement. “This Committee and the Senate should not move forward with any Trump nominee for the Federal Reserve, including the chairman of the Federal Reserve.”

Sen. Tim Scott (R.S.C.), who chairs the Senate Banking Committee, has said nothing publicly about the Justice Department’s attack on Powell and did not respond to a request for comment. News themezone reached out to all other Republican members of the committee who have not yet spoken, and most did not immediately respond to a request for comment.

Senior House Republicans also expressed displeasure with the Justice Department’s investigation into Powell. Rep. French Hill (R-Ark.) called it an “unnecessary distraction” and said it would “undermine the ability of this and future administrations to make sound monetary policy decisions.”

Jennifer Bendery contributed reporting.

CORRECTION: Senator Roger Marshall does not serve on the Senate Banking Committee.