URGENT UPDATE: U.S. Senate Republicans are taking a stand against the Trump administration’s escalating threats to indict Federal Reserve Chair Jerome Powell. On Monday, multiple GOP lawmakers voiced their strong concerns over the implications of a criminal investigation, calling for swift action to protect the integrity of the nation’s central bank.
The investigation, which alleges that Powell misled Congress regarding the costly renovation of the Fed’s headquarters in Washington, has sparked a backlash among Republicans. Senator Thom Tillis led the charge, announcing plans to block President Donald Trump from nominating new candidates to the Fed in response to what he sees as a dangerous overreach by the administration.
Senator Kevin Cramer, a member of the Senate Banking Committee, stated, “Jerome Powell is a bad Fed Chair who has been elusive with Congress… I do not believe, however, he is a criminal. I hope this criminal investigation can be put to rest quickly.” Cramer’s comments reflect a growing concern that Trump’s actions could undermine the Federal Reserve’s critical independence, which is essential for managing the U.S. economy amid political turbulence.
Adding to the chorus, Senator Lisa Murkowski expressed her support for Tillis’ plan to obstruct Trump’s Fed nominees, emphasizing the need for stability and trust in the central bank. The senators’ reactions highlight a significant rift between Trump and congressional Republicans, who have largely aligned with his agenda but are now voicing dissent on issues related to the Fed, including recent controversies surrounding the release of files on convicted sex offender Jeffrey Epstein and U.S. foreign policy.
The investigation’s announcement sent shockwaves through financial markets. Gold prices surged to an all-time high, while the dollar experienced a decline. Meanwhile, the S&P 500 index opened lower but stabilized as trading continued.
Trump has publicly denied any requests to the Justice Department to take action against Powell, labeling the investigation a “pretext” for exerting influence over interest rate setting. This ongoing conflict raises critical questions about the future of the Federal Reserve and its leadership.
As the situation develops, lawmakers are calling for a swift resolution to restore confidence in the Fed. The urgency of these discussions underscores the potential impact on global financial markets, making it a pivotal moment for both the Trump administration and the future of U.S. monetary policy.
Stay tuned for more updates on this developing story as it continues to unfold.
