A sweeping and strikingly bipartisan chorus of lawmakers have raised concerns following revelations that the Department of Justice has subpoenaed Federal Reserve Chair Jerome Powell as part of a criminal probe into the central banker’s handling of a costly office renovation project.
Leading voices from both parties are warning that the probe — and potential criminal indictment — constitutes a direct threat to the Fed’s independence and the stability of the U.S. economy.
The backlash comes less than 24 hours after Powell disclosed that the Fed received grand jury subpoenas related to Senate Banking Committee testimony he gave in June about construction cost overruns at the Fed’s Washington, D.C., headquarters.
Powell alleged in his extraordinary public video statement that the renovation project was being used as pretext, and that the real reason for the probe was “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.”
‘A direct assault’
The response from Capitol Hill has been swift, with many top Democrats and Republicans aligning in their defense of the central bank.
Sen. Elizabeth Warren, D-Mass., ranking member of the Senate Banking Committee, claimed that the investigation signals a “corrupt takeover of America’s central bank” by President Donald Trump.
“He wants to push Jerome Powell off the Fed Board for good and install another sock puppet,” Warren said in a statement issued Sunday.
Her colleague, Sen. Mark Warner, D-Va., issued a series of posts on X describing the probe as a “direct assault” on the foundation of the U.S. economy. Warner cautioned that using criminal prosecution to influence rates risks spiking borrowing costs for families trying to buy homes.
Prominent Republicans have been equally vocal. Sen. Lisa Murkowski, R-Alaska, after speaking directly with Powell, characterized the probe as “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,” Murkowski wrote in a statement shared on social media.
Sen. Thom Tillis, R-N.C., issued a fiery rebuke, stating that “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.”
Rep. French Hill, R-Ark., also defended Powell’s integrity in a statement released Monday, calling the criminal charges an “unnecessary distraction” at a time when the nation’s economy requires focus.
Trump, Pulte deny involvement
As political fallout intensified, the White House moved to distance itself from the investigation. Trump, speaking to NBC News shortly after Powell’s announcement, stated he had no prior knowledge of the subpoenas.
White House Press Secretary Karoline Leavitt subsequently reinforced the denial, telling reporters Monday that while the president did not order the probe, he maintains that Powell is “bad at his job” and that the president reserves his First Amendment right to criticize monetary policy.
Similarly, Bill Pulte, director of the Federal Housing Finance Agency (FHFA) and a vocal critic of Powell’s, denied any role in the legal escalation during an interview with Bloomberg TV.
The Justice Department, the White House and the FHFA did not respond to Scotsman Guide’s requests for comment.
