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Sen. Lisa Murkowski (R-Alaska) arrives in the US Capitol for a vote on Wednesday, January 7, 2026.
(Photo by Bill Clark/CQ-Roll Call, Inc via Getty Images)
Backlash Builds Against Trump DOJ's 'Unprecedented' Investigation of US Federal Reserve Chairman
"If the Federal Reserve loses its independence, the stability of our markets and the broader economy will suffer."
Jan 12, 2026
The US Department of Justice's decision to open a criminal investigation into Federal Reserve Chairman Jerome Powell has ignited a major backlash that even has some Republican senators drawing a line in the sand.
Shortly after Powell released a video on Sunday accusing the Department of Justice (DOJ) of waging an "intimidation" campaign against him on behalf of President Donald Trump, Sen. Thom Tillis (R-NC) blasted the administration, accusing them of trying to compromise the independence of America's central bank.
“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,” said Tillis, who further vowed to "oppose the confirmation of any nominee for the Fed—including the upcoming Fed chair vacancy—until this legal matter is fully resolved."
On Monday, Sen. Lisa Murkowski (R-Alaska) backed up Tillis' pledge to oppose any nominees for the Federal Reserve until the criminal probe of Powell, whose term as Fed chair is due to end in May, has been resolved.
Murkowski also revealed that she spoke with Powell and determined that "it’s clear the administration’s investigation is nothing more than an attempt at coercion" aimed at affecting his decisions on US monetary policy.
"The stakes are too high to look the other way," Murkowski emphasized. "If the Federal Reserve loses its independence, the stability of our markets and the broader economy will suffer."
Trump can only afford to lose the support of four Republican senators in a vote for a new Fed chair, which means Tillis and Murkowski's vows not to support any nominee until the case against Powell is resolved carry significant weight.
A bipartisan group of economists who have served under US presidents dating back to Ronald Reagan—including former Federal Reserve Chairs Alan Greenspan, Ben Bernanke, and Janet Yellin—released a joint statement on Monday denouncing what they described as an effort to strong-arm the Federal Reserve into doing the president's bidding.
"The reported criminal inquiry into Federal Reserve Chair Jay Powell is an unprecedented attempt to use prosecutorial attacks to undermine... independence," they wrote. "This is how monetary policy is made in emerging markets with weak institutions, with highly negative consequences for inflation and the functioning of their economies more broadly. It has no place in the United States, whose greatest strength is the rule of law, which is at the foundation of our economic success."
Trump, who nominated Powell to be Federal Reserve chairman in 2017, has been openly pressuring Powell for months to more aggressively cut interest rates in the face of a faltering jobs market.
Powell, however, has continued to take a more cautious approach, and has cited the price instability caused by Trump's tariffs as a reason to hold off on more aggressive rate cuts.
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The US Department of Justice's decision to open a criminal investigation into Federal Reserve Chairman Jerome Powell has ignited a major backlash that even has some Republican senators drawing a line in the sand.
Shortly after Powell released a video on Sunday accusing the Department of Justice (DOJ) of waging an "intimidation" campaign against him on behalf of President Donald Trump, Sen. Thom Tillis (R-NC) blasted the administration, accusing them of trying to compromise the independence of America's central bank.
“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,” said Tillis, who further vowed to "oppose the confirmation of any nominee for the Fed—including the upcoming Fed chair vacancy—until this legal matter is fully resolved."
On Monday, Sen. Lisa Murkowski (R-Alaska) backed up Tillis' pledge to oppose any nominees for the Federal Reserve until the criminal probe of Powell, whose term as Fed chair is due to end in May, has been resolved.
Murkowski also revealed that she spoke with Powell and determined that "it’s clear the administration’s investigation is nothing more than an attempt at coercion" aimed at affecting his decisions on US monetary policy.
"The stakes are too high to look the other way," Murkowski emphasized. "If the Federal Reserve loses its independence, the stability of our markets and the broader economy will suffer."
Trump can only afford to lose the support of four Republican senators in a vote for a new Fed chair, which means Tillis and Murkowski's vows not to support any nominee until the case against Powell is resolved carry significant weight.
A bipartisan group of economists who have served under US presidents dating back to Ronald Reagan—including former Federal Reserve Chairs Alan Greenspan, Ben Bernanke, and Janet Yellin—released a joint statement on Monday denouncing what they described as an effort to strong-arm the Federal Reserve into doing the president's bidding.
"The reported criminal inquiry into Federal Reserve Chair Jay Powell is an unprecedented attempt to use prosecutorial attacks to undermine... independence," they wrote. "This is how monetary policy is made in emerging markets with weak institutions, with highly negative consequences for inflation and the functioning of their economies more broadly. It has no place in the United States, whose greatest strength is the rule of law, which is at the foundation of our economic success."
Trump, who nominated Powell to be Federal Reserve chairman in 2017, has been openly pressuring Powell for months to more aggressively cut interest rates in the face of a faltering jobs market.
Powell, however, has continued to take a more cautious approach, and has cited the price instability caused by Trump's tariffs as a reason to hold off on more aggressive rate cuts.
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The US Department of Justice's decision to open a criminal investigation into Federal Reserve Chairman Jerome Powell has ignited a major backlash that even has some Republican senators drawing a line in the sand.
Shortly after Powell released a video on Sunday accusing the Department of Justice (DOJ) of waging an "intimidation" campaign against him on behalf of President Donald Trump, Sen. Thom Tillis (R-NC) blasted the administration, accusing them of trying to compromise the independence of America's central bank.
“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,” said Tillis, who further vowed to "oppose the confirmation of any nominee for the Fed—including the upcoming Fed chair vacancy—until this legal matter is fully resolved."
On Monday, Sen. Lisa Murkowski (R-Alaska) backed up Tillis' pledge to oppose any nominees for the Federal Reserve until the criminal probe of Powell, whose term as Fed chair is due to end in May, has been resolved.
Murkowski also revealed that she spoke with Powell and determined that "it’s clear the administration’s investigation is nothing more than an attempt at coercion" aimed at affecting his decisions on US monetary policy.
"The stakes are too high to look the other way," Murkowski emphasized. "If the Federal Reserve loses its independence, the stability of our markets and the broader economy will suffer."
Trump can only afford to lose the support of four Republican senators in a vote for a new Fed chair, which means Tillis and Murkowski's vows not to support any nominee until the case against Powell is resolved carry significant weight.
A bipartisan group of economists who have served under US presidents dating back to Ronald Reagan—including former Federal Reserve Chairs Alan Greenspan, Ben Bernanke, and Janet Yellin—released a joint statement on Monday denouncing what they described as an effort to strong-arm the Federal Reserve into doing the president's bidding.
"The reported criminal inquiry into Federal Reserve Chair Jay Powell is an unprecedented attempt to use prosecutorial attacks to undermine... independence," they wrote. "This is how monetary policy is made in emerging markets with weak institutions, with highly negative consequences for inflation and the functioning of their economies more broadly. It has no place in the United States, whose greatest strength is the rule of law, which is at the foundation of our economic success."
Trump, who nominated Powell to be Federal Reserve chairman in 2017, has been openly pressuring Powell for months to more aggressively cut interest rates in the face of a faltering jobs market.
Powell, however, has continued to take a more cautious approach, and has cited the price instability caused by Trump's tariffs as a reason to hold off on more aggressive rate cuts.
From Your Site Articles
Related Articles Around the Web
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