Trump faces Fed roadblock as key Republican blasts justice probe
Source: msn/Bloomberg
9h
(Bloomberg) -- President Donald Trump faced immediate bipartisan pushback Sunday night after Federal Reserve Chair Jerome Powell accused the Department of Justice of launching a grand jury investigation as a pretext to pressure and intimidate the central bank. Senator Thom Tillis, a key Republican on the Banking Committee who isnt running for reelection, vowed to oppose any Trump nominees to the Fed until the matter is resolved.
If there were any remaining doubt whether advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none, Tillis said in a statement. It is now the independence and credibility of the Department of Justice that are in question.
I will oppose the confirmation of any nominee for the Fed including the upcoming Fed Chair vacancy until this legal matter is fully resolved, said Tillis, who also sits on the Judiciary Committee, which has oversight over the Justice Department.
Trump has made clear for months that he wants the Federal Reserve to quickly and deeply cut interest rates. Various parts of the administration have taken aim at sitting Fed governors, including Lisa Cook, a Joe Biden pick, and now, Powell.
Read more: https://www.msn.com/en-us/news/politics/trump-faces-fed-roadblock-as-key-republican-blasts-justice-probe/ar-AA1U1Hq7
LetMyPeopleVote
(175,183 posts)Team Trump has embraced the idea that the levers of prosecutorial power are just another tool to be used against those who get in the presidents way.
As Trumpâs DOJ pursues Powell, it's worth appreciating the brazenness: Trump abusing the justice system. He knows heâs abusing the system. He knows that we know heâs abusing the system â but heâs doing it anyway.
— Steve Benen (@stevebenen.com) 2026-01-12T13:05:08.422Z
The corruption is the point. www.ms.now/rachel-maddo...
https://www.ms.now/rachel-maddow-show/maddowblog/prosecutors-open-investigation-into-fed-chair-powell-sparking-immediate-backlash
That didnt make a lot of sense there were no grounds for such a case but two weeks later, those comments became relevant anew. As it happens, the president didnt bother pursuing some baseless civil suit against the Fed chair; instead, his team settled on a different legal tactic. The New York Times reported:
The U.S. attorneys office in the District of Columbia has opened a criminal investigation into Jerome H. Powell, the Federal Reserve chair, over the central banks renovation of its Washington headquarters and whether Mr. Powell lied to Congress about the scope of the project, according to officials briefed on the situation.
The inquiry, which includes an analysis of Mr. Powells public statements and an examination of spending records, was approved in November by Jeanine Pirro, a longtime ally of President Trump who was appointed to run the office last year, the officials said.
Around the time the news started to reach the public, Powell issued a roughly two-minute video statement, speaking directly to the camera, confirming that Trumps Justice Department on Friday had served the Federal Reserve with grand jury subpoenas, threatening a criminal indictment.
Video message from Federal Reserve Chair Jerome H. Powell:
— Federal Reserve (@federalreserve.gov) 2026-01-12T00:35:27.499Z
www.youtube.com/watch?v=KckG...
www.federalreserve.gov/newsevents/s...
.......A political backlash is brewing too. Democratic leaders wasted little time in condemning the developments, but the pushback wasnt entirely partisan. Republican Sen. Thom Tillis of North Carolina, a member of the Senate Banking Committee, said in a statement, If there were any remaining doubt whether advisers 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 are in question.
Just as notably, the senator said he would oppose the confirmation of any nominee for the Fed including the upcoming Fed Chair vacancy until this legal matter is fully resolved.
But as important as these elements are, its worth appreciating the profound damage Trump and his team are doing to the rule of law as the dust settles on the news......
Trump doesnt appear to be the least bit concerned about appearances or a pretense of propriety. Hes abusing the system. He knows hes abusing the system. He knows that we know hes abusing the system but hes doing it anyway.
Its easy to believe that Trump and his confederates arent hiding their weaponization of the criminal justice system because they want everyone to notice. They need federal officials and White House critics to be afraid, and other federal prosecutors to understand that theyll soon be unemployed unless they play ball with the Republican agenda.
The corruption is the point.
There might be half-hearted denials, issued with winks and nods, but by design, everyone should be painfully aware of what is plainly true: The authoritarian crisis has arrived, and its getting worse. We now live in a country where the presidents opponents are pursued by prosecutors in brazen displays of partisan power.
riversedge
(79,532 posts)Sen. Lisa Murkowski
@lisamurkowski
After speaking with Chair Powell this morning, its clear the administrations investigation is nothing more than an attempt at coercion. If the Department of Justice believes an investigation into Chair Powell is warranted based on project cost overrunswhich are not unusualthen Congress needs to investigate the Department of Justice. 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. My colleague, Senator Tillis, is right in blocking any Federal Reserve nominees until this is resolved.
Link to tweet
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