The U.S. Justice Department subpoenaed the Federal Reserve on Friday to open a criminal investigation into Federal Reserve chair Jerome H. Powell, and on Monday, some Republican lawmakers bristled at the decision.
According to a New York Times report, the backlash could hurt President Donald Trump’s effort to put legal pressure on Powell.
Powell’s term as Federal Reserve chair ends in May but he can remain on the policy-setting board until 2028.
The Justice Department is investigating Powell over his testimony about the renovation of the Federal Reserve’s headquarters and whether he lied to Congress. Many consider this a power grab from President Donald Trump.
The move has been noted as a way to end the Federal Reserve’s independence, according to North Carolina Republican and Senate Banking Committee member Sen. Thom Tillis.
Other Republicans support the Federal Reserve staying independent, and Tillis made his opposition evident when he told the New York Times he would not confirm a nomination for the Federal Reserve until the legal matter is resolved.
That move would hinder Trump’s pick for chair, as the Senate Banking Committee has to approve the nomination before it can be approved by the Senate.
