Story perspectives

Senators Demand DOJ Probe Amid Fed Independence Crisis

1/13/2026

Summary

Murkowski Demands Investigation

Senator Lisa Murkowski (R-Alaska) called for a congressional investigation into the DOJ after its criminal probe into Federal Reserve Chair Jerome Powell.
Powell says the DOJ actions threaten the central bank's independence, heightening tensions with the Trump administration.
Senator Chuck Schumer accused U.S. President Donald Trump of bullying the Fed, while Elizabeth Warren criticized DOJ overreach.
Both parties pledged to block Trump's Fed nominees until the investigation is resolved.

Summary

Tillis Blocks Nominations

Senator Thom Tillis (R-NC) will block all Federal Reserve nominations until the criminal investigation into Jerome Powell, the Chair of the Federal Reserve, is resolved.
He criticized the Trump administration for undermining the Fed's independence.
The investigation stems from Powell's testimony about the Fed's expensive headquarters renovation and questions the Justice Department's credibility.
Powell said the probe arises from the Fed's refusal to bow to political pressure on interest rates and threatens the Fed's independence.

History

Historical Context

The Federal Reserve Reform Act of 1977 established the Fed's dual mandate to promote maximum employment and stable prices, responding to the economic turmoil of the 1970s, including inflation rates exceeding 13%. Current tensions between the Federal Reserve and the Trump administration reflect historical conflicts over central bank independence, raising concerns about the Fed's operational autonomy and future leadership appointments.

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Murkowski Demands Investigation

Senator Lisa Murkowski (R-Alaska) called for a congressional investigation into the DOJ after its criminal probe into Federal Reserve Chair Jerome Powell.
Powell says the DOJ actions threaten the central bank's independence, heightening tensions with the Trump administration.
Senator Chuck Schumer accused U.S. President Donald Trump of bullying the Fed, while Elizabeth Warren criticized DOJ overreach.
Both parties pledged to block Trump's Fed nominees until the investigation is resolved.

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