In a joint letter, former Fed chairmen called the charges an “unprecedented attempt” to undermine the independence of the U.S. central bank.
Published January 12, 2026
U.S. Sen. Lisa Murkowski backed Republican Thom Tillis’ plan to block President Donald Trump’s Fed nomination after the Justice Department threatened to indict Federal Reserve Chairman Jerome Powell over the weekend.
“The risks are too high to turn a blind eye. If the Federal Reserve were to lose its independence, market stability and the overall economy would be undermined,” Murkowski wrote in X on Monday.
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Mr. Murkowski is one of the few Republicans in the U.S. Senate, where his party holds a 53-47 majority, who has indicated a willingness to vote, sometimes against Mr. Trump’s wishes.
Since returning to office last year, Mr. Trump has increasingly publicly pressured the Fed to cut interest rates, breaking with a long-standing practice aimed at insulating the central bank from political pressure and allowing it to focus on economic data.
Murkowski, R-Alaska, said she spoke with Mr. Powell early Monday, and Mr. Powell said Sunday that he received a subpoena last week that Mr. Powell called a “pretext” aimed at basing the Fed’s interest rates on policy rather than Mr. Trump’s wishes.
Murkowski said the Justice Department’s threat was “nothing more than an attempt at coercion,” adding that Congress should investigate the Justice Department if it believes it warrants an investigation into the Fed over renovation cost overruns, which he said is “not unusual.”
Mr. Hassett also gives his opinion.
Powell’s term expires in May, and White House economic adviser Kevin Hassett is considered the likely candidate to succeed him.
Mr. Hassett questioned Mr. Powell’s testimony to Congress regarding construction of the Fed’s new building, which is at the center of the Justice Department’s investigation.
“Right now we have a building that looks like a dramatic cost overrun, and we have plans for a building that seem to contradict testimony, but again, I’m not from the Department of Justice. I hope everything goes well for Jay,” Hassett told CNBC News’ “Squawk Box.”
Afterward, Mr. Hassett said he would support an investigation if he were in charge of the Fed, telling reporters, “It seems like the Justice Department has decided they want to know what’s going on in this building, which is far more expensive than any building in the history of Washington.”
President Trump has long advocated more aggressive rate cuts, and in a December post on his platform Truth Social, he said, “America should be rewarded by our successes, not defeated by our failures. Anyone who disagrees with me will never be Fed Chairman!”
Former officials condemn investigation
Three former heads of the Federal Reserve Board joined other former federal economic policy leaders on Monday to condemn the Trump administration’s criminal investigation of the Fed chairman, likening it to interference with central bank independence often seen in emerging market countries with “weak institutions.”
The statement, signed by Janet Yellen, Ben Bernanke and former Fed Chair Alan Greenspan, said: “The reported criminal investigation against Fed Chair Jay Powell is an unprecedented attempt to use prosecutorial attacks to undermine Fed Chairman Jay Powell’s independence.”
“This is how monetary policy is conducted in emerging markets with weak institutions, and it has very negative effects on inflation and the functioning of the broader economy. There is no room for monetary policy in the United States, where our greatest strength is the rule of law, the foundation of our economic success.”
The three were joined by 10 former economic policymakers appointed by Republican and Democratic presidents.
