Democrats and a handful of Republicans are warning President Trump’s Department of Justice about the potential economic peril that could result from the DOJ’s investigation of Federal Reserve Chair Jerome Powell.
[Note: Powell is ostensibly being investigated over his testimony before the Senate Banking Committee regarding renovations at the Fed’s D.C. headquarters. The Fed Chair strongly refuted that narrative in a video response posted Sunday night, claiming instead that the investigation was prompted by the Executive branch’s desire to remove the Fed’s independence and exert control over monetary policy. Powell said plainly: “This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings.”]
Video message from Federal Reserve Chair Jerome H. Powell: https://t.co/5dfrkByGyX pic.twitter.com/O4ecNaYaGH
— Federal Reserve (@federalreserve) January 12, 2026
One Republican publicly objecting to the investigation of Powell is U.S. Senator Lisa Murkowski (R-AK), who wrote on Monday: “After speaking with Chair Powell this morning, it’s clear the administration’s 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 overruns—which are not unusual—then 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.”
Lisa, you’re not accurate in this. I referred him for perjury in July. You’re making this political when it’s not. The Senate has the same standards as the House regarding perjury. https://t.co/eqnRP6h0Gv
— Rep. Anna Paulina Luna (@RepLuna) January 12, 2026
MAGA-aligned Rep. Anna Paulina Luna (R-FL) replied to Murkowski: “Lisa, you’re not accurate in this. I referred him for perjury in July. You’re making this political when it’s not. The Senate has the same standards as the House regarding perjury.”
While MAGA supporters are responding with support for Luna’s comment — calling Murkowski a RINO — Democrats are also responding with name-calling. That included leftwing influencer Keith Olbermann, who replied: “She’s Senator Murkowski to you, you blithering idiot.”
One self-described “principled conservative” replied to Luna: “It’s not political? Really? You are a completely unserious person.”
Note: U.S. Senator John Kennedy (R-LA), who sits on the Banking Committee with Tillis (R-NC), also warned: “Litigation between the Federal Reserve and the executive branch of the United States government is going to cause interest rates to go up, not down.” He added, “We need this like we need a hole in the head.”