The most notable reaction in Congress came from North Carolina senator Thom Tillis, a Republican who serves on the Senate Banking Committee, who took a shot at the Justice Department’s investigation and said the agency’s credibility is now “in question.” Tillis, who has been more outspoken since he announced plans to retire at the end of his term, vowed to block any of the Trump administration’s nominations to the Federal Reserve.
Senator Lisa Murkowski said she spoke to Powell Monday morning and that it was clear that the Justice Department’s investigation was “nothing more than an attempt at coercion.” The Alaskan senator echoed her colleague Tillis and said that the Senate should refuse to confirm any Trump nominations to the Federal Reserve.
In a statement, House Committee on Financial Services chairman French Hill noted that he’s known Powell since they both worked at the Treasury Department during the George H.W. Bush administration. The Arkansas congressman said that he knows Powell as a “man of integrity with a strong commitment to public service.”
“Pursuing criminal charges relating to his testimony on building renovations at a time when the nation’s economy requires focus and creates an unnecessary distraction. The Federal Reserve is led by strong, capable individuals appointed by President Trump, and this action could undermine this and future Administrations’ ability to make sound monetary policy decisions,” he wrote.
Senate Majority Leader John Thune said that he hasn’t seen the allegations against Powell, but told reporters Monday that “they better be real and they better be serious.”
“It needs to be resolved quickly because the Fed’s role and the Fed’s independence in shaping monetary policy in the country is something we need to ensure proceeds without political interference. Hopefully they’ll be able to get this thing, whatever it is — dealt with & resolved quickly,” he said per Punchbowl News.
Other Republicans expressed some skepticism of the federal government’s investigation even if they held their own criticisms of Powell. New York congressman Mike Lawler, a member of the House Financial Services Committee, did not appear in favor of the move in an interview with Politico. “While I fundamentally believe Chairman Powell was late in addressing inflation under Joe Biden and has been woefully slow in lowering interest rates over the past year, the independence of the Federal Reserve is paramount and I oppose any effort to pressure them into action,” he said.
Senator Kevin Cramer of North Dakota criticized Powell’s handling of the bank but said in a statement that he doesn’t believe the chairman is a criminal.
“I hope this criminal investigation can be put to rest quickly along with the remainder of Jerome Powell’s term. We need to restore confidence in the Fed,” Cramer said.
Senator Dave McCormick of Pennsylvania echoed Cramer’s sentiment in a statement to Politico. “I also agree with President Trump that Chairman Powell has been slow to cut interest rates,” he said. “I think the Federal Reserve renovation may well have wasted taxpayer dollars, but the proper place to fix this is through Congressional oversight. I do not think Chairman Powell is guilty of criminal activity.”
In an interview with Fox Business’ Maria Bartiromo, Senator Roger Marshall of Kansas suggested the president might be trolling Powell. “We’ll let the system play through here. I think there’s other issues we should be focused on,” he said.
