Some Republican lawmakers on Monday criticized the Justice Department’s investigation of Federal Reserve Chairman Jerome Powell, as a group of former Fed leaders called it an unprecedented assault against the independence of the central bank. Rep. French Hill, the chairman of the House Financial Services Committee, issued a statement Monday attesting to Powell’s character, calling him “a man of integrity with a strong commitment to public service.” “While over the years we have had our policy disagreements, I found him to be forthright, candid, and a person of the highest integrity,” the Arkansas Republican said. "Pursuing criminal charges relating to his testimony on building renovations at a time when the nation's economy requires focus creates an unnecessary distraction.” Powell late Sunday confirmed that the Federal Reserve has been served with grand jury subpoenas in connection with an investigation of his June 2025 testimony to the Senate Banking Committee about Federal Reserve building renovations. But he contended in a video statement that the issue was a pretext and the threat of criminal charges had to do with the Federal Reserve not following the preferences of the president on setting interest rates. Sen. Lisa Murkowski, R-Alaska, on Monday criticized the move from the Justice Department and endorsed a pledge from Sen. Thom Tillis, R-N.C., a key swing vote on the Banking Committee that oversees the Fed and approves central bank nominees, to oppose the confirmation of any Federal Reserve nominee until the matter was resolved. “After speaking with Chair Powell this morning, 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,” Murkowski posted on social media. “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 said. Sen. Kevin Cramer, R-N.D., a member of the Senate Banking Committee, in a statement criticized Powell for his approach during the Biden administration and being “elusive with Congress” about the renovations. “I do not believe, however, he is a criminal,” Cramer said. “I hope this criminal investigation can be put to rest quickly along with the remainder of Jerome Powell’s term. We need to restore confidence in the Fed.” Senate Majority Leader John Thune, R-S.D., told reporters that the investigation could make it a challenge to confirm Fed nominees. “I think it's really important that it get resolved quickly and that there not be any appearance of political interference with the Fed or its activities,” Thune said. Meanwhile, House Speaker Mike Johnson brushed off concerns there were improper motives. “Of course not,” Johnson told CNN when asked if the Justice Department was being weaponized against Powell. The grand jury subpoenas sent to the Federal Reserve deepens a larger power struggle over the direction and independence of an institution at the heart of the nation’s economy, at a time of persistent concerns over inflation and the job market. A group of former Federal Reserve chairs and Treasury secretaries issued a joint statement underscoring the impact the Federal Reserve's independence has on the economic trajectory of the nation. They called the criminal probe an unprecedented attempt to utilize “prosecutorial attacks” to undercut that independence. “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,” the statement said. “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.” Signing the statement were former Treasury Secretaries Henry Paulson and Robert Rubin, along with former Fed chairs Ben Bernanke, Alan Greenspan and Janet Yellen, who also is a former Treasury secretary. The investigation prompted another wave of criticism from Democratic members of Congress that the Trump administration was using the Justice Department to retaliate against its political adversaries. Since Trump’s return to office, his administration has blurred the line between the White House and the Justice Department, weakening the traditional guardrails that maintained independence between political actors and federal prosecutions. Senate Minority Leader Charles E. Schumer of New York called the investigation an assault on Fed independence. “This is the kind of bullying that we’ve all come to expect from Donald Trump and his cronies,” Schumer said. “Anyone who is independent and doesn’t just fall in line behind Trump gets investigated.” Sen. Richard J. Durbin of Illinois, the top Democrat on the Senate Judiciary Committee, said Trump wants to use “his lackeys” at the Justice Department to execute his worst instincts. The precise details at the heart of the Justice Department probe remain unknown. But the investigation involves whether Powell lied to Congress about the scope of the renovation project, according to The New York Times. It wouldn’t be the first time a Trump adversary has been charged with lying to Congress. The Justice Department charged former FBI Director James B. Comey last year, after Trump publicly directed Attorney General Pamela Bondi to bring a case against him. The hastily brought charges were subsequently dismissed by a federal judge who found that the interim U.S. attorney who secured the indictments was illegally appointed. The Justice Department has appealed that ruling. Many Senate Democrats broadly condemned the move by the Trump administration against Powell. Sen. Elizabeth Warren, D-Mass., said the Senate must not move on any Trump Fed nominee. “He is abusing the law like a wannabe dictator so the Fed serves him and his billionaire friends,” Warren said of Trump in a social media post. Sen. Kirsten Gillibrand, D-N.Y., called the situation a “wanton act of legal intimidation” against Powell. “This ridiculous and blatant abuse of power does not just hurt the Federal Reserve, but threatens the stability of the American economy,” Gillibrand said in a statement. Jacob Fulton contributed to this report.
