GOP Backlash to DOJ Probe Threatens Fed Confirmations and Independence
Republican senators criticized a DOJ criminal probe into Fed Chair Powell over renovation testimony, threatening to block Fed confirmations and raising concerns about central-bank independence.
Overview
Who: Several Republican senators, including Thom Tillis, Lisa Murkowski, Kevin Cramer and John Kennedy, publicly criticized the DOJ investigation into Fed Chair Jerome Powell.
What: The D.C. U.S. attorney’s office issued grand-jury subpoenas tied to Powell’s June testimony and the Federal Reserve headquarters renovation, prompting a criminal probe.
Where/When: Subpoenas were served in Washington last Friday; Hill criticism intensified over the weekend and continued into Monday as lawmakers reacted.
How: Committee Republicans warned they would withhold or block Fed nominees until the investigation is resolved, potentially stalling confirmations and requiring 60 votes to advance nominees.
Why it matters: Lawmakers and analysts say the probe risks undermining Fed independence, complicating monetary policy, harming market confidence, and reducing prospects for further interest-rate cuts.
Analysis
Center-leaning sources frame the story as a political misstep for the administration by using evaluative headlines ("backfiring"), prioritizing GOP criticism and bipartisan unease, highlighting market calm to minimize financial panic, and curating strong anti-probe quotes (e.g., 'farce,' 'frivolous') while omitting administration or DOJ defenses — emphasizing political fallout.
Sources (9)
FAQ
The DOJ is investigating whether Fed Chair Jerome Powell provided false testimony to Congress in June about the scope, cost, and authorization of the Federal Reserve headquarters renovation project, which has ballooned to around $2.5-2.6 billion.
Republican senators Thom Tillis, Lisa Murkowski, Kevin Cramer, and John Kennedy have publicly criticized the DOJ investigation into Powell.
Powell described the probe as unprecedented and politically motivated, using the renovation and his testimony as pretexts to pressure the Fed on interest rates, while affirming respect for the rule of law.
Cost overruns are attributed to dropping a five-story tower for below-ground space, unexpected asbestos and soil contamination, high water table, inflation-driven material costs, and firing the original architectural firm.
Republicans warn they will block Fed nominees until resolved, stalling confirmations; it risks undermining central bank autonomy, complicating policy, harming market confidence, and pressuring rate cuts.
History
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