U.S. Sen. Lisa Murkowski (R-Alaska) walks after the Senate passed President Donald Trump’s sweeping spending and tax bill at the Capitol on July 1, 2025 in Washington, DC.
Elizabeth Franz | Reuters
As the Trump administration’s Justice Department moves forward with a criminal investigation into Federal Reserve Chairman Jerome Powell, Republican protests have become louder on Capitol Hill.
Powell announced Sunday night that the Justice Department has opened an investigation into his handling of renovations to the central bank’s headquarters and his testimony to Congress about the matter. Powell said the investigation is an attempt to intimidate President Donald Trump, who is cutting interest rates at a slower pace than he would like.
Republican resistance could derail the selection of Mr. Powell’s successor when the central bank chief’s term expires in May, as North Carolina Republican Sen. Thom Tillis has threatened to block nominations to the central bank until the investigation is resolved. Tillis’ comments are now being echoed by other Republicans.
“The administration’s investigation is nothing more than an attempt at coercion,” Sen. Lisa Murkowski (R-Alaska) said in a post on X, calling for a Congressional investigation into the matter.
“If the Department of Justice believes that an investigation into Chairman Powell is warranted based on business expense overruns, which is not uncommon, then Congress needs to investigate the Department,” Murkowski said. “The risks are too high to turn a blind eye. A loss of Federal Reserve independence would undermine market stability and the overall economy. My colleague, Senator Tillis, is right to block nominations for the Federal Reserve Board until this issue is resolved.”
Blocking Tillis is a big problem for Trump, who has long sought to oust Powell and replace him with an ally. The Banking Committee is made up of 13 Republicans and 11 Democrats, and the departure of one Republican could create a stalemate that could prevent candidates from moving forward.
President Trump has repeatedly said he intends to succeed Powell when his term expires in May. However, it is possible that Mr. Powell will remain as president until 2028.
And the chorus of Republicans criticizing the administration over the investigation is only getting louder.
House Financial Services Committee Chairman French Hill (R-Arkansas) said: “Pursuing criminal charges related to his testimony regarding building renovations is a shame at a time when our nation’s economy needs focus and unnecessary distractions.”
“The Fed is led by strong and capable individuals appointed by President Trump, and this action could undermine the ability of current and future administrations to make sound monetary policy decisions,” he said.
Even Democratic Sen. Kevin Cramer, a member of the Banking Committee and a frequent critic of Mr. Powell, criticized the investigation.
“Jerome Powell is a bad Fed chairman who has had trouble negotiating with Congress, particularly over overruns on delicate building renovations,” Cramer said. “However, I do not believe he is a criminal. I hope this criminal investigation is quickly discontinued with the remainder of Chairman Jerome Powell’s term in office. We need to restore trust in the Fed.”
CNBC reached out to Senate Banking Committee Chairman Tim Scott, R.S.C., for comment on Powell’s investigation.
But Trump has one ally in his administration’s push to investigate Powell. That’s Republican Sen. Cynthia Lummis of Wyoming.
“The American people deserve answers about whether Chairman Powell was unprepared for his testimony or whether he intentionally misled Congress about the Fed’s lavish spending,” Lummis said. “I will wait for the Department of Justice to release its findings before commenting further.”
CNBC has reached out to the White House for a response to the members’ complaints.
This story is developing. Please check back for the latest information.
