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.<\/p>\n\n\n\n
Murkowski said she spoke with Federal Reserve Chair Jerome Powell on Monday morning and backed Sen. Thom Tillis\u2019s (R-N.C.) decision to block any of President Trump\u2019s nominees to the Federal Reserve until the dispute is resolved.<\/p>\n\n\n\n
\n\u201cAfter speaking with Chair Powell this morning, it\u2019s clear the administration\u2019s investigation is nothing more than an attempt at coercion,\u201d Murkowski said in a statement. \u201cIf the Department of Justice believes an investigation into Chair Powell is warranted based on project cost overruns\u2014which are not unusual\u2014then Congress needs to investigate the Department of Justice.\u201d<\/p>\n\n\n\n
\u201cThe 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,\u201d she continued. \u201cMy colleague, Senator Tillis, is right in blocking any Federal Reserve nominees until this is resolved.\u201d<\/p>\n<\/blockquote>\n\n\n\n
DOJ probe focuses on Fed renovation as Powell warns of criminal referral<\/h3>\n\n\n\n
The controversy intensified after the Justice Department (DOJ) announced Sunday that it would investigate the Fed\u2019s multi-billion-dollar renovation of its Washington headquarters\u2014an issue that has raised questions in both parties about government spending discipline and transparency.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
The renovation at the Fed has been estimated at $2.5 billion, and Powell\u2019s June testimony focused heavily on the project\u2019s scope and costs\u2014an issue likely to draw scrutiny from fiscal conservatives already skeptical of unchecked spending in Washington.<\/p>\n\n\n\n
Still, Powell argued that the DOJ\u2019s actions go beyond normal oversight.<\/p>\n\n\n\n
\n\u201cThe 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,\u201d Powell said in his Sunday statement.<\/p>\n\n\n\n
\u201cThis is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions\u2014or whether instead monetary policy will be directed by political pressure or intimidation,\u201d he added.<\/p>\n<\/blockquote>\n\n\n\n
Trump pushes for rate cuts amid economic pressure and political fallout<\/h3>\n\n\n\n
President Trump has repeatedly criticized Powell for not cutting interest rates fast enough\u2014especially as polls show declining support for the president\u2019s 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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
Powell\u2019s term as chair expires in May.<\/p>\n\n\n\n