Lawmakers Oppose Trump’s Pressure on the Fed

Senator Lisa Murkowski (R-Alaska) publicly backed a plan by fellow Republican Senator Thom Tillis to block any Trump nominees for the Federal Reserve. Murkowski argued that political interference in the Fed could threaten the stability of the US economy:

“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 wrote on social media platform X.

Murkowski is among a small group of Republicans willing to vote against Trump’s wishes in the Senate, where the GOP holds a 53-47 majority.

Since returning to office in 2025, Trump has repeatedly pressured the Fed to cut interest rates, breaking with longstanding traditions meant to insulate the central bank from political influence.

Justice Department Probe

Powell disclosed that the Federal Reserve received subpoenas from the Justice Department, which he described as “pretexts” aimed at influencing Fed policy. The investigation centers on cost overruns in the construction of the Fed’s new building, which some officials, including White House adviser Kevin Hassett, say were unusually high.

“Right now, we’ve got a building that’s got like, dramatic cost overruns and plans that look inconsistent with the testimony, but again, I’m not a Justice Department person,” Hassett told CNBC.

Trump has publicly insisted he will not appoint anyone who disagrees with him to lead the Fed, posting in December 2025:

“The United States should be rewarded for SUCCESS, not brought down by it. Anybody that disagrees with me will never be the Fed Chairman!”

Former Fed Chairs Condemn Investigation

The probe has drawn bipartisan criticism from former Federal Reserve leaders. Janet Yellen, Ben Bernanke, and Alan Greenspan, joined by 10 other former top economic officials, issued a statement calling the investigation “an unprecedented attempt to use prosecutorial attacks to undermine” Fed independence.

“This is how monetary policy is made in emerging markets with weak institutions, with highly negative consequences for inflation and the functioning of their economies. It has no place in the United States, whose greatest strength is the rule of law,” the statement read.

The former Fed chairs compared Trump’s actions to interference in central banks in countries with weak institutions, highlighting the potential risks to inflation control and economic stability.

Political Implications

Powell’s term is set to expire in May 2026. The Justice Department probe, coupled with Trump’s explicit interference, has sparked concern over the Fed’s independence and could influence upcoming Senate confirmations of any Fed nominees.

Murkowski and Tillis’ stance demonstrates that even some Republicans are willing to oppose the president to defend the independence of the central bank. Analysts warn that any politicization of the Fed could have major economic consequences both domestically and internationally.