Republican opposition grows on Capitol Hill

Republican protests are growing louder on Capitol Hill as the Trump administration’s Justice Department continues a criminal investigation into Federal Reserve Chairman Jerome Powell.

On Sunday night, Powell announced that he had opened an investigation into the Justice Department’s handling of renovations at the central bank headquarters and his testimony to Congress on the matter. Powell said the investigation was an attempt to intimidate him because he had cut interest rates at a slower pace than President Donald Trump wanted.

GOP resistance could derail the Fed chief’s eventual pick to replace Powell when his term expires in May, as North Carolina Republican Sen. Thom Tillis, a member of the Senate Banking Committee, has threatened to block any nominee to the central bank until the investigation is resolved. Tillis’ comments are now being echoed by other Republicans.

Sen. Lisa Murkowski, R-Alaska, wrote: Publish on XHe stated that “the administration investigation is nothing more than an attempt at pressure” and called for a congressional investigation into the matter.

“If the Justice Department believes an investigation of Chairman Powell is warranted based on project cost overruns—which is not uncommon—then Congress should investigate the Justice Department,” Murkowski said. he said. “The stakes are too high to look the other way: If the Federal Reserve loses its independence, the stability of our markets and the economy at large will suffer. My colleague Senator Tillis is right to block Federal Reserve nominees until this issue is resolved.”

Tillis’ blockade is a big problem for Trump, who has long sought to oust Powell and replace him with an ally. The Banking Committee consists of 13 Republicans and 11 Democrats; That means Republicans breaking away from one party could cause stalemate and prevent a candidate from advancing.

Trump has repeatedly said he plans to replace Powell when his term as Fed chairman expires in May. However, Powell is expected to serve as governor until 2028.

And the Republican chorus criticizing the administration for the investigation is growing louder.

“Pursuing criminal charges related to his testimony regarding building renovations at a time when the nation’s economy requires focus and creates an unnecessary distraction,” said House Financial Services Chairman French Hill, a Republican from Arkansas.

“The Federal Reserve is led by strong, capable individuals appointed by President Trump, and this action could undermine that and the ability of future Administrations to make sound monetary policy decisions,” he said.

Even Sen. Kevin Cramer (R.N.D.), a member of the Banking Committee who has been a frequent critic of Powell, criticized the investigation.

“Jerome Powell is a bad Fed Chairman who will be elusive with Congress, especially regarding overruns on the elaborate renovation of the building,” Cramer said. “But I do not believe he is a criminal. I hope this criminal investigation can be quickly concluded with the remainder of Jerome Powell’s term in office. We need to restore trust in the Fed.”

CNBC reached out to Senate Banking Committee Chairman Tim Scott, R.S.C., for comment on the investigation into Powell. contacted.

But Trump has an ally in his administration’s effort to investigate Powell: Sen Cynthia Lummis, R-Wyo.

“Whether Chairman Powell was unprepared for his testimony or deliberately misled Congress about the Fed’s excessive spending, the American people deserve answers. I will wait until the Department of Justice releases its findings before commenting further,” Lummis said.

CNBC reached out to the White House for a response to members’ complaints.

This story is developing. Please check back for updates.