Sen. Lisa Murkowski said that the investigation is “nothing more than an attempt at coercion” while Rep. French Hill warned that the probe would create “an unnecessary distraction.”
WASHINGTON — A growing list of Republicans, including two senators on the influential Senate Banking Committee, have spoken out against the Justice Department subpoenas of the Federal Reserve and warned that the probe could undermine the central bank’s independence.
Sen. Lisa Murkowski, R-Alaska, said in a statement that she spoke with Fed Chair Jerome Powell on Monday and that “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,” she said in the statement.
“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 added.
Murkowski, a moderate, is one of the more frequent Republicans to buck the Trump administration, and Trump has criticized her for breaking with the party on issues such as advancing a war powers measure.
Sen. Thom Tillis, a member of the Senate Banking Committee, accused the administration of undermining the Federal Reserve’s independence and vowed to block any Fed nominees “until this legal matter is fully resolved.”
“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 said on X Sunday evening. “It is now the independence and credibility of the Department of Justice that are in question. I will oppose the confirmation of any nominee for the Fed—including the upcoming Fed Chair vacancy—until this legal matter is fully resolved.”
Murkowski praised Tillis’ statement, saying that he was “right in blocking any Federal Reserve nominees until this is resolved.”
Sen. Kevin Cramer, who also sits on the Senate Banking Committee, said in a statement that he believes Powell “is a bad Fed Chair who has been elusive with Congress,” but added, “I do not believe however, he is a criminal.”
“I hope this criminal investigation can be put to rest quickly along with the remainder of Jerome Powell’s term,” Cramer said in a statement. “We need to restore confidence in the Fed.”
As members of the banking committee, Tillis and Cramer vote on whether or not to advance Federal Reserve nominees to a full Senate vote. The committee is comprised of 13 Republicans and 11 Democrats, meaning that Tillis could effectively stall Trump’s nominees if he sides with Democrats, bringing the voting margin to 12-12.
Sen. Roger Marshall, R-Kan., was asked in an interview with Fox Business on Monday whether he believed the probe was political. Marshall said that Trump was perhaps “almost trolling here,” adding, “we’ve got bigger issues to go after than this one.”
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