WASHINGTON — A growing list of Republicans, including several members of the influential Senate Banking Committee, have spoken out against the Justice Department's 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 Republicans who more frequently 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, R-N.C., a member of the 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 Sunday evening on X. "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 he was "right in blocking any Federal Reserve nominees until this is resolved."
As a member of the Banking Committee, Tillis votes on whether to advance Federal Reserve nominees to full Senate votes. The committee consists of 13 Republicans and 11 Democrats, meaning Tillis could effectively stall Trump’s nominees if he sides with Democrats, bringing the voting calculus to 12-12.
Asked Monday whether he had had a conversation with anyone in the administration about his hold on Fed nominees, Tillis told NBC News, "No, I haven't." He was also asked whether he had spoken with Powell. He responded, "Not today."
Senate Majority Leader John Thune, R-S.D., asked about the Justice Department investigation, told reporters on Capitol Hill on Monday afternoon, “I haven’t seen the case or whatever the allegations or charges are, but they better be real, and they better be serious.”
Sen. Kevin Cramer, R-N.D., who is also on the 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. "We need to restore confidence in the Fed."
Sen. Dave McCormick, R-Pa., a Banking Committee member whom Trump endorsed in the 2024 election, added that he did "not think Chairman Powell is guilty of criminal activity."
"I believe strongly in an independent Federal Reserve. I also agree with President Trump that Chairman Powell has been slow to cut interest rates. I think the Federal Reserve renovation may well have wasted taxpayer dollars, but the proper place to fix this is through Congressional oversight," McCormick said in a statement Monday.
Sen. John Kennedy, R-La., told reporters Monday that he knows Powell "very well" and would be "shocked if he has done anything wrong."
"If you wanted to design a system to cause interest rates to go up and not down, you would have the Federal Reserve of the United States and the executive branch of the United States get into a pissing contest," said Kennedy, who sits on the Banking Committee.
"We don’t need it. We need it like we need a hole in our head. And everybody needs to take their meds and step back a little bit," he added.
Sen. Susan Collins, R-Maine, another Banking Committee member, said she spoke with Powell by phone Sunday night.
“I watched his video, which I found to be — to raise a lot of disturbing questions. I believe strongly in the independence of the Federal Reserve, and I know Jay Powell to be a person of integrity,” Collins said.
Powell said in a video statement Sunday that “the threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president.”
Asked in an interview with Fox Business on Monday whether he believed the probe was political, Sen. Roger Marshall, R-Kan., said Trump was perhaps “almost trolling here,” adding, “We’ve got bigger issues to go after than this one.”
House Financial Services Committee Chair French Hill, R-Ark., defended Powell as "a person of the highest integrity" and warned that the subpoenas "could undermine this and future Administrations’ ability to make sound monetary policy decisions."
“Pursuing criminal charges relating to his testimony on building renovations at a time when the nation’s economy requires focus and creates an unnecessary distraction,” Hill said in a statement. Hill's committee oversees the Federal Reserve, the Treasury Department and the Securities and Exchange Commission.
Trump and Treasury Secretary Scott Bessent spoke Sunday evening after the Justice Department announced its investigation, two sources familiar with the conversation told NBC News.
One of the sources described the situation as a mess — citing blowback from Congress — and said Bessent expressed his frustration to Trump that it creates an unnecessary distraction from other work on the Treasury Department’s plate.
The source also said the investigation risks further alienating GOP moderates in the Senate, which would complicate the process for Trump in an election year for Congress when he still needs their votes and support.
Republicans are seeking to defend their majorities in the House and the Senate during the November midterm elections, when the incumbent president's party traditionally loses seats.
“It’s like maybe we should lose the majority so the WH and leadership stop making stupid decisions,” a GOP lawmaker said in a text message Monday to NBC News. “Our leadership and admin just keep doubling down on stupid.”
Other Republicans were supportive of the DOJ investigation. Asked by NBC News whether the probe compromises the credibility and independence of the Justice Department, House Speaker Mike Johnson, R-La., said: “Of course not, no. They’re doing their job.”
Johnson called the allegations “serious” and said that “if the investigation is warranted, then they’ll have to play that out.”
On whether he personally thinks the investigation is warranted, Johnson said, “I have not reviewed his testimony, so I’m not sure, but that’s not really my lane.”
The White House and the Justice Department did not immediately respond to requests for comment Monday.
The White House on Sunday referred a request for comment on Tillis' statement to the Justice Department. A Justice Department spokesperson declined to comment on a specific case Sunday but said Attorney General Pam Bondi instructed her team "to prioritize investigating any abuse of taxpayer dollars." The Federal Reserve is not funded through taxpayer dollars.
Democrats have overwhelmingly rebuked the Justice Department over the probe. Senate Minority Leader Chuck Schumer, D-N.Y., on Monday called the investigation “a brazen attempt by Donald Trump to cannibalize the Fed’s independence,” adding the Senate should reject any future Trump nominees to the central bank so long as the probe continues.
The Justice Department probe comes after months of pressure from administration officials and Trump himself for the Federal Reserve to lower interest rates further. Trump has frequently lashed out at Powell in particular, calling him a "dummy" and "Too Late." Trump nominated Powell for Fed chair in 2017.
Powell's term as chair ends in May, but he has a seat on the Federal Reserve Board of Governors until 2028.
The Federal Reserve probe is only the latest in a series of actions the Justice Department has taken against frequent targets of Trump's ire. It also indicted former FBI Director James Comey and New York Attorney General Letitia James following pressure from Trump; both cases were dropped after the prosecutor was disqualified. Former national security adviser John Bolton, who became a vocal critic of Trump after his first term, was also indicted in October.
