The Justice Department’s investigation into Federal Reserve Chairman Jerome Powell is drawing backlash from former Federal Reserve and Treasury officials as well as current members of Congress, including those in President Donald Trump’s own party.
A bipartisan group of top economic officials issued a blistering statement Monday calling the investigation an “unprecedented attempt to use judicial attacks to undermine” the central bank’s independence.
“This is how monetary policy is done in emerging markets with weak institutions, with very negative consequences for inflation and the functioning of their economies in general. It has no place in the United States, whose greatest strength is the rule of law, which is the basis of our economic success,” read the statement by Alan Greenspan, Ben Bernanke, Janet Yellen, Tim Geithner, Jacob Lew, Hank Paulson and others.
The investigation, announced by Powell in a rare video message on Sunday, is related to Powell’s testimony last June about the multi-year renovation of the Federal Reserve buildings in Washington. But Trump has made Powell a frequent target of his attacks and pressure to lower interest rates.
Federal Reserve Chairman Jerome Powell holds a news conference following a two-day meeting of the Federal Open Market Committee at the U.S. Federal Reserve in Washington, Dec. 10, 2025.
Kevin Lamarque/Reuters
White House National Economic Council Director Kevin Hassett, who is on Trump’s short list to be the next Federal Reserve chair, said time will tell whether the investigation is a pretext to fire Powell over interest rates.
“Well, in time we’ll find out if this seems like a pretext.” Hassett, who denied being involved in the investigation, told CNBC in an appearance Monday. “But right now we have a building that has dramatic cost overruns and, you know, plans for the buildings that seem inconsistent with the testimony. But, again, I’m not a Department of Justice person. I hope everything turns out well.”
Republican Sen. Thom Tillis, who sits on the Senate Banking Committee, said he will oppose the confirmation of any Trump nominee to the Federal Reserve until legal issues involving Powell are resolved, which could make it difficult for a nominee to leave the committee.
“If there was any doubt about whether advisors within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none. It is now the independence and credibility of the Department of Justice that is in question,” Tillis said in a statement Sunday night.
Senator Thom Tillis arrives to attend a briefing for senators on the situation in Venezuela, on Capitol Hill in Washington, DC, on January 7, 2026.
Evelyn Hockstein/Reuters
Republican Sen. Lisa Murkowski, posting on X on Monday, said Tillis is “right to block any Fed nominee.”
“After speaking with Chairman Powell this morning, it is clear that the administration’s investigation is nothing more than an attempt at coercion. If the Justice Department believes that an investigation into Chairman Powell is warranted due to project cost overruns, which is not unusual, then Congress needs to investigate the Justice Department. There is too much at stake to look the other way: if the Federal Reserve loses its independence, the stability of our markets and the broader economy will be affected,” Murkowski posted on X.
House Financial Services Chairman Rep. French Hill, a Republican, said Filing criminal charges against Powell is “an unnecessary distraction.” Sen. Kevin Cramer, another Republican on the Senate Banking Committee, said he does not believe Powell is a criminal and hopes the criminal matter will be resolved soon.
House Speaker Mike Johnson told reporters Monday that “if the investigation is warranted, then they’re going to have to do it.” Asked if he thought the investigation was justified, Johnson said: “I haven’t reviewed his testimony, so I’m not sure, but that’s not really my path.”
A spokesman for Attorney General Pam Bondi said Bondi “has instructed his U.S. attorneys to prioritize investigating any abuse of taxpayer dollars.” Powell said in his statement that the investigation was prompted by Trump’s months-long pressure campaign on him to lower interest rates.
Sen. Elizabeth Warren, D-Mass., speaks about the future of the Democratic Party during her speech as the National Press Club’s Headliners Newsmaker at the National Press Club in Washington, Jan. 12, 2026.
Bill Clark/CQ Roll Pass via AP
Sen. Elizabeth Warren, the top Democrat on the Senate Banking Committee, criticized Trump as a “wannabe dictator” for his campaign against Powell.
“Acting like the would-be dictator that he is, Trump is trying to oust the chairman of the Federal Reserve Board and complete his corrupt takeover of the US central bank to serve his interests, along with those of his billionaire friends,” Warren said in a speech on the future of the Democratic Party through 2028 at the National Press Club.
President Trump denied any involvement in the criminal investigation during a brief interview with NBC News on Sunday night, but continued to criticize Powell’s leadership.
ABC News’ Lauren Peller contributed to this report.
