The Justice Division investigation into Federal Reserve Chairman Jerome Powell is sparking backlash from former Federal Reserve and Treasury officers in addition to present members of Congress, together with these in President Donald Trump’s personal social gathering.
Republican Sen. Thom Tillis, who serves on the Senate Banking Committee, referred to as the DOJ investigation “one other instance of novice hour” when requested by ABC Information on Monday what his message is to Trump and the president’s advisers.
“I’ve mentioned repeatedly I very seldom disagree with the president, however I disagree with unhealthy recommendation he has been given,” Tillis mentioned. “He has publicly mentioned he wasn’t conscious of this.”
A bipartisan group of prime financial officers launched a blistering assertion on Monday calling the probe an “unprecedented try to make use of prosecutorial assaults to undermine” the central financial institution’s independence.
“That is how financial coverage is made in rising markets with weak establishments, with extremely unfavorable penalties for inflation and the functioning of their economies extra broadly. It has no place in the USA whose best energy is the rule of regulation, which is on the basis of our financial success,” learn the assertion from Alan Greenspan, Ben Bernanke, Janet Yellen, Tim Geithner, Jacob Lew, Hank Paulson and others.
The investigation, introduced by Powell in a uncommon video message on Sunday, is said to Powell’s testimony final June concerning the multiyear renovation of the Federal Reserve buildings in Washington. However Trump has made Powell a frequent goal of his assaults and push to chop rates of interest.
Federal Reserve Chair Jerome Powell holds a press convention following a two-day assembly of the Federal Open Market Committee on the U.S. Federal Reserve in Washington, December 10, 2025.
Kevin Lamarque/Reuters
Trump denied any involvement within the felony probe throughout a short interview with NBC Information on Sunday night time however continued his criticism of Powell’s management. White Home press secretary Karoline Leavitt on Monday mentioned “no” Trump didn’t direct the Justice Division to research however argued the president has “each proper to criticize the Fed chair.”
ABC Information Chief White Home Correspondent Mary Bruce requested Leavitt, “Does the president imagine that the Fed ought to function independently from him?”
“The president has made it fairly clear he thinks Jerome Powell is unhealthy at his job. And the president has made it fairly clear, as have many economists, by the way in which, that rates of interest ought to be lowered and they need to have been lowered a very long time in the past,” she responded.
“However does he imagine within the independence of the Fed?” Bruce pressed.
“He has and he mentioned that many instances,” Leavitt mentioned.
White Home Nationwide Financial Council Director Kevin Hassett, who’s on Trump’s quick listing to be the following Federal Reserve chair, mentioned time will inform if the probe is a pretext for firing Powell over rates of interest.
“Nicely, within the fullness of time, we’ll discover out whether or not it appears like a pretext,” Hassett, who denied involvement within the probe, advised CNBC in an look on Monday. “However proper now, we have a constructing that is acquired, like, dramatic value overruns and, you understand, plans for the buildings that look inconsistent with the testimony. However, you understand, once more, I am not a Justice Division individual. I hope the whole lot seems OK.”
Tillis mentioned he’ll oppose the affirmation of any Trump nominee to the Federal Reserve till authorized issues regarding Powell are resolved, which might make it tough for a nominee to advance out of committee.
“If there have been any remaining doubt whether or not advisers inside the Trump Administration are actively pushing to finish the independence of the Federal Reserve, there ought to now be none. It’s now the independence and credibility of the Division of Justice which can be in query,” Tillis mentioned in an announcement on Sunday night time.
Senator Thom Tillis arrives to attend a briefing for senators on the state of affairs in Venezuela, on Capitol Hill in Washington, D.C., January 7, 2026.
Evelyn Hockstein/Reuters
Republican Sen. Lisa Murkowski, in a publish on X on Monday, mentioned Tillis is “proper in blocking any Federal Reserve nominees.”
“After talking with Chair Powell this morning, it is clear the administration’s investigation is nothing greater than an try at coercion. If the Division of Justice believes an investigation into Chair Powell is warranted based mostly on venture value overruns — which aren’t uncommon — then Congress wants to research the Division of Justice. The stakes are too excessive to look the opposite means: if the Federal Reserve loses its independence, the soundness of our markets and the broader economic system will endure,” Murkowski posted on X.
Home Monetary Providers Chairman Rep. French Hill, a Republican, mentioned pursuing felony expenses in opposition to Powell is “an pointless distraction.” Sen. Kevin Cramer, one other Republican on the Senate Banking Committee, mentioned that he doesn’t imagine Powell is a felony and that he hopes the felony matter will quickly be put to relaxation.
Home Speaker Mike Johnson advised reporters on Monday that “if the investigation is warranted, then they’ll need to play that out.” When pressed if he believed the probe is warranted, Johnson mentioned, “I’ve not reviewed his testimony, so I’m not positive, however that is not likely my lane.”
A spokesperson for Legal professional Basic Pam Bondi mentioned Bondi “has instructed her U.S. Attorneys to prioritize investigating any abuse of taxpayer {dollars}.” Powell mentioned in his assertion the probe was fueled by Trump’s monthslong stress marketing campaign on him to decrease rates of interest.
Sen. Elizabeth Warren, D-Mass., speaks about the way forward for the Democratic Get together throughout her Nationwide Press Membership Headliners Newsmaker speech on the Nationwide Press Membership in Washington, January 12, 2026.
Invoice Clark/CQ Roll Name by way of AP
Sen. Elizabeth Warren, the highest Democrat on the Senate Banking Committee, slammed Trump as a “wannabe dictator” over his marketing campaign in opposition to Powell.
“Performing just like the wannabe dictator he’s, Trump is attempting to push out the chairman of the Federal Reserve Board and full his corrupt takeover of America’s central financial institution in order that it serves his pursuits, alongside along with his billionaire mates,” Warren mentioned in a speech about the way forward for the Democratic Get together forward of 2028 on the Nationwide Press Membership.
ABC Information’ Lauren Peller contributed to this report.
