Sen. Lisa Murkowski (R-Alaska) is calling for a congressional investigation into the Justice Department after the Trump administration announced a probe into Jerome Powell.
Murkowski said she spoke with Federal Reserve Chair Jerome Powell on Monday morning and backed Sen. Thom Tillis’s (R-N.C.) decision to block any of President Trump’s nominees to the Federal Reserve until the dispute is resolved.
“After speaking with Chair Powell this morning, it’s clear the administration’s investigation is nothing more than an attempt at coercion,” Murkowski said in a statement. “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.”
“The stakes are too high to look the other way: if the Federal Reserve loses its independence, the stability of our markets and the broader economy will suffer,” she continued. “My colleague, Senator Tillis, is right in blocking any Federal Reserve nominees until this is resolved.”
DOJ probe focuses on Fed renovation as Powell warns of criminal referral
The controversy intensified after the Justice Department (DOJ) announced Sunday that it would investigate the Fed’s multi-billion-dollar renovation of its Washington headquarters—an issue that has raised questions in both parties about government spending discipline and transparency.
Powell said soon after the DOJ announcement that federal investigators served the Fed with grand jury subpoenas and threatened a criminal indictment related to his testimony before the Senate Banking Committee in June.
The renovation at the Fed has been estimated at $2.5 billion, and Powell’s June testimony focused heavily on the project’s scope and costs—an issue likely to draw scrutiny from fiscal conservatives already skeptical of unchecked spending in Washington.
Still, Powell argued that the DOJ’s actions go beyond normal oversight.
“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,” Powell said in his Sunday statement.
“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation,” he added.
Trump pushes for rate cuts amid economic pressure and political fallout
President Trump has repeatedly criticized Powell for not cutting interest rates fast enough—especially as polls show declining support for the president’s handling of the economy. Trump allies have argued that high rates are squeezing families, slowing growth, and driving up borrowing costs for mortgages, credit cards, and small businesses.
At the same time, many conservatives have long argued the Federal Reserve should not operate as an untouchable institution, particularly when inflation and instability hit working Americans hardest. Critics say the Fed often avoids consequences even when its decisions contribute to economic volatility, while everyday Americans are left paying the price.
Powell’s term as chair expires in May.
