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Sen. Lisa Murkowski (R-Alaska) became the second Republican to support a plan to block any Federal Reserve Board nominees proposed by President Donald Trump after the Department of Justice launched a criminal investigation into Fed Chairman Jerome Powell.

The Federal Reserve received grand jury <a href="https://www.theepochtimes.com/us/justice-department-serves-federal-reserve-with-grand-jury-subpoenas-powell-says-5969437">subpoenas</a> from the Justice Department on Jan. 9, threatening a criminal indictment related to Powell’s testimony in June 2025 about the central bank’s building renovation project.

Murkowski said in a social media <a href="https://x.com/lisamurkowski/status/2010743755603948017?s=20">post</a> that she spoke with Powell on Jan. 12 and that the investigation was “an attempt at coercion.”

“If the Department of Justice believes an investigation into Chair Powell is warranted based on project cost overruns—which are not unusual—then Congress needs to investigate the Department of Justice,” Murkowski stated. “My colleague, Senator Tillis, is right in blocking any Federal Reserve nominees until this is resolved.”

Sen. Thom Tillis (R-N.C.) was the first Republican to announce that he would oppose the confirmation of any nominee for the Fed—including the upcoming Fed chair vacancy—until the legal matter was cleared up.

“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 <a href="https://x.com/SenThomTillis/status/2010514786467959269">posted</a> on X on Jan. 11.

"It is now the independence and credibility of the Department of Justice that are in question.”

Powell posted a <a href="https://x.com/federalreserve/status/2010510130970849338">video statement</a> on the Federal Reserve’s official social media account on the night of Jan. 11 describing the subpoenas.

“This unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure,” Powell said. “This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. ... The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public rather than following the preferences of the president.”

Sen. Thom Tillis (R-N.C.) listens during a Senate Judiciary Hearing in Washington on June 18, 2025. (Anna Moneymaker/Getty Images)

Trump has <a href="https://www.theepochtimes.com/us/trump-says-he-wont-fire-powell-but-may-have-to-force-something-on-rates-5871975">publicly criticized</a> Powell, accusing him of slow-walking the reduction of interest rates during Trump's second term as inflation cooled while costs remained high after rising by more than <a href="https://waysandmeans.house.gov/2025/12/18/smith-after-democrats-fueled-an-inflation-crisis-republicans-are-bringing-real-relief/">20 percent</a> under the four years of the Biden administration, according to a report by the House Ways and Means Committee.

Trump and Powell also clashed during a tour of the Federal Reserve’s renovation project in July 2025. The project has been a source of controversy because of cost overruns and delays. The initial project budget was $1.9 billion, but it has ballooned to $2.5 billion because of inflation, asbestos, and soil contamination.

In June 2025, Trump ratcheted up his demand that the Fed lower rates and said he “may have to force something.”

The Federal Reserve cut its key interest rate by a quarter point at its final policy meeting in December 2025.

Trump has also become embroiled in a legal challenge after <a href="https://www.theepochtimes.com/us/trump-fires-federal-reserve-governor-lisa-cook-5906052">firing</a> Federal Reserve Board of Governors member Lisa Cook in August 2025. Board of Governors members are appointed by U.S. presidents with the consent of the Senate and serve 14-year terms.

Trump accused Cook of potential criminal conduct in a financial matter related to alleged false statements on mortgage documents. A Supreme Court hearing on the case is scheduled for Jan. 21.

<em>From <a href="https://www.theepochtimes.com/us/2-republican-senators-vow-to-block-trumps-federal-reserve-nominees-5969686">The Epoch Times</a></em>

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