Two GOP Senators Back Plan to Stop Trump’s Federal Reserve Takeover

At least two Republican senators plan to fight back after the Department of Justice opened a criminal investigation into Federal Reserve Chair Jerome Powell over the weekend, vowing to block all of President Trump’s nominations to the central bank.

Senator Lisa Murkowski said Monday on X, “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. 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,” Murkowski added. “My colleague, Senator Tillis, is right in blocking any Federal Reserve nominees until this is resolved.”

Thom Tillis, a member of the Senate Banking Committee who will retire at the end of his term this year, has vowed to block all of the Trump administration’s Fed nominees until the Department of Justice backs off from its investigation into Powell and other Fed officials.

“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,” Tillis posted on X Sunday. The Senate Banking Committee has a narrow 13–11 advantage for Republicans, meaning that his opposition would stall any of Trump’s picks.

Powell sounded the alarm over the DOJ’s investigation into himself Sunday, saying that the independence of the financial body was at stake over “the administration’s threats and ongoing pressure.” Now it seems that some Republicans agree. The question is whether Trump will back down or still try to strong-arm Powell and the Fed.