Republicans Rally Behind Powell as Trump Clouds Fed Chair Search
Senate Republicans defended Fed Chair Jerome Powell against Justice Department subpoenas and presidential pressure, while Trump's remarks about Kevin Hassett reshape contest for Powell's successor.
Overview
Senate Republicans, including Trump allies, publicly defended Fed Chair Powell after Justice Department subpoenas, emphasizing support for an independent Federal Reserve and due process.
Powell released a video accusing the administration of using pretexts to pressure rate decisions and briefed Republican senators through multiple follow-up calls to shore up support.
President Trump said he prefers keeping top economic adviser Kevin Hassett at the White House, complicating the Fed chair selection and boosting Kevin Warsh's prospects.
Markets reacted: 10-year Treasury yields edged up as Warsh's improved odds signaled a potentially hawkish Fed, while subpoenas raised independence concerns on Capitol Hill.
Several Republican senators warned they might block Fed nominees until the legal questions are settled, reflecting rare GOP resistance to presidential pressure and amplifying nomination uncertainty.
Analysis
Center-leaning sources frame the story as a defense of Fed independence, highlighting Powell’s bipartisan credentials and GOP pushback against Trump. Editorial choices include vivid language such as 'bulldozing', selection of sympathetic Republican voices, and structuring that contrasts Powell’s relationships with White House pressure, producing an institutional-defense narrative.
Sources (4)
FAQ
The DOJ subpoenas relate to Powell's June testimony before the Senate Banking Committee about the Federal Reserve's $2.5 billion renovation of office buildings, including features like rooftop terraces and custom elevators.
Powell released a video statement calling the subpoenas pretexts to pressure the Fed on interest rates, emphasizing the central bank's independence and commitment to setting rates based on economic conditions rather than presidential preferences.
Senate Republicans, including Trump allies, defended Powell, emphasized support for Fed independence and due process, and warned they might block Fed nominees until legal questions are resolved.
Trump stated he prefers keeping his top economic adviser Kevin Hassett at the White House, complicating the Fed chair selection and boosting prospects for Kevin Warsh as Powell's potential successor.
10-year Treasury yields edged up due to Warsh's hawkish prospects, while markets showed concern over Fed independence with the dollar sinking and gold rising.
History
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