At a Glance
- Sens. Lisa Murkowski and Thom Tillis blast DOJ subpoenas of the Federal Reserve as political coercion
- Tillis vows to oppose any Fed nominee, including the next chair, until the probe ends
- Banking Committee Republicans could stall Trump’s picks by siding with Democrats
- Why it matters: The standoff threatens the central bank’s independence and could freeze key monetary-policy appointments
A growing number of Republicans are openly resisting the Justice Department’s subpoenas of the Federal Reserve, warning the investigation risks eroding the central bank’s independence. Two GOP members of the powerful Senate Banking Committee-Sens. Thom Tillis of North Carolina and Lisa Murkowski of Alaska-have now pledged to block future Fed nominees until the matter is resolved.
Murkowski: Probe Is “Attempt at Coercion”
Murkowski, who spoke directly with Fed Chair Jerome Powell on Monday, called the administration’s move “nothing more than an attempt at coercion.” In a statement released afterward, she argued that if cost overruns on a Fed building project justify a criminal probe, then Congress should investigate the Justice Department instead.
> “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,” Murkowski said.
The moderate Alaskan has frequently broken with former President Trump and the party line, most notably on war-powers measures. Her latest stance adds bipartisan weight to concerns that the probe is politically motivated.
Tillis Promises Nominee Blockade
Tillis, also a Banking Committee member, escalated the confrontation Sunday evening by vowing to oppose confirmation of any Fed nominee-including the next chair-until the subpoenas are withdrawn.
> “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 posted on X. “It is now the independence and credibility of the Department of Justice that are in question.”
Murkowski quickly endorsed Tillis’ position, saying he was “right in blocking any Federal Reserve nominees until this is resolved.”
Banking Committee Math
With 13 Republicans and 11 Democrats on the panel, a single GOP defection could deadlock nominations. If Tillis sides with Democrats, the vote would split 12-12, effectively stalling Trump’s picks before they reach the Senate floor. Sen. Kevin Cramer, R-N.D., another committee Republican, conceded that while he views Powell as “a bad Fed Chair who has been elusive with Congress,” he does not consider the chair a criminal.
> “I hope this criminal investigation can be put to rest quickly along with the remainder of Jerome Powell’s term,” Cramer said. “We need to restore confidence in the Fed.”
GOP Defense of Powell Grows
House Financial Services Committee Chair French Hill, R-Ark., whose panel oversees the Fed, Treasury, and SEC, defended Powell as “a person of the highest integrity.” Hill 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 creates an unnecessary distraction,” Hill said.
Sen. Roger Marshall, R-Kan., told Fox Business on Monday that Trump may be “almost trolling here,” adding, “we’ve got bigger issues to go after than this one.”
Johnson Backs DOJ
Not all Republicans share those reservations. House Speaker Mike Johnson, R-La., rejected suggestions that the investigation undermines the Justice Department’s credibility.
> “Of course not, no. They’re doing their job,” Johnson told Derrick M. Collins. He called the allegations “serious” and said, “if the investigation is warranted, then they’ll have to play that out.”
Johnson added that he had not personally reviewed Powell’s testimony and therefore could not judge whether the probe was justified, noting, “that’s not really my lane.”
White House, DOJ Silent
The White House and Justice Department did not respond to requests for comment Monday. On Sunday, the White House referred inquiries to the DOJ, where a spokesperson declined to discuss the specifics but noted that Attorney General Pam Bondi has directed staff “to prioritize investigating any abuse of taxpayer dollars.” The Federal Reserve is not funded by taxpayer dollars.
Context: Rate-Cut Pressure
The subpoenas follow months of public pressure from Trump and administration officials for the Fed to lower interest rates more aggressively. Trump has repeatedly attacked Powell, whom he nominated in 2017, labeling him a “dummy” and “Too Late.”
In a video statement Sunday, Powell framed the threat of criminal charges as retaliation for setting 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, though he retains a seat on the Fed’s Board of Governors until 2028.
Pattern of DOJ Targets
The Fed probe is the latest in a series of Justice Department actions against frequent Trump adversaries. The DOJ previously indicted former FBI Director James Comey and New York Attorney General Letitia James after Trump urged investigations; both cases were dropped after the assigned prosecutor was disqualified. Former national security adviser John Bolton was also indicted in October.
Key Takeaways
- Two Senate Banking Committee Republicans now pledge to block Fed nominees over subpoenas
- A 12-12 committee split could freeze confirmations, complicating the search for Powell’s successor
- GOP critics say the probe jeopardizes central-bank independence and market stability
- Trump allies counter that the Justice Department is simply pursuing legitimate oversight
