WASHINGTON — In the second term of President Donald Trump’s administration, a clear pattern has emerged: the president aggressively challenges elected and appointed officials who do not align with his directives. In the unfolding confrontation with Federal Reserve Chair Jerome Powell, the President appears to be confronting a particularly resilient opponent.
As the administration intensifies its campaign to pressure the Federal Reserve, deploying Justice Department subpoenas and implying possible criminal charges, Senate Republicans have coalesced in support of Powell, staunchly defending the autonomy of the Fed despite originating from the same political party as Trump.
Senator John Kennedy of Louisiana, a steadfast Trump ally, expressed strong confidence in Powell’s integrity, stating, "I know Chairman Powell very well. I will be stunned — I will be shocked — if he has done anything wrong." This expression of trust comes in the wake of escalating investigations and subpoenas concerning Powell’s conduct and the central bank’s internal decisions.
Following the Justice Department's subpoenas, Powell released a video statement countering the administration's approach. He accused officials of misusing “pretexts” to coerce the Fed into slashing interest rates, a move President Trump has repeatedly advocated. Since his appointment in 2018, Powell has cultivated critical relationships on Capitol Hill, engaging with multiple Republican senators through calls shortly after releasing his statement.
Robert Tetlow, a former senior policy adviser at the Fed, highlighted Powell’s adeptness at Congressional relations: "He knows his way around Congress. He gets in there, pets the dog, shoots the breeze, and has a way of getting people to like him, and he’s really good at it." This skill has been pivotal in maintaining support amidst political attacks.
In a March 2024 hearing, Powell experienced an informal but telling gesture of familiarity when Senator Thom Tillis greeted him by conveying regards from the Senate Banking Committee’s office dog, Gus. Tillis, a North Carolina Republican retiring later this year, has been prominent among Republicans defending Powell, declaring his intention to block any Trump administration nominees to the Fed until the prevailing legal issues are resolved.
Alaska Senator Lisa Murkowski echoed Tillis’ stance, vocal about blocking nominees and expressing concerns that the current investigation may be intended to intimidate and coerce. After discussions with Powell, several Republican senators view the legal scrutiny as unwarranted pressure.
Both Murkowski and Tillis have openly criticized the Trump administration in recent months, but what distinguishes the current support for Powell is the backing from reliable Trump partisans who, despite disagreements with the Fed’s monetary policies, have rallied around the Fed chair.
Senator Dave McCormick of Pennsylvania, another member of the Senate Banking Committee, articulated his belief in the importance of Federal Reserve independence, acknowledging alignment with President Trump’s view that Powell has been slow to cut rates but rejecting any notion of criminal conduct. This nuanced support underscores the delicate balance Republican senators maintain between policy disagreements and principles of institutional autonomy.
Senate Majority Leader John Thune, Republican of South Dakota, insisted that any investigation must be authentic and substantial, reiterating concerns about the seriousness of ongoing inquiries.
In the House of Representatives, Financial Services Committee Chair French Hill expressed disapproval of the Justice Department’s probe, commending Powell’s integrity and longstanding commitment to public service. Hill recounted personal experience with Powell dating back to their work together at the Treasury Department during the George H.W. Bush administration, emphasizing Powell’s reputation for candor and professionalism despite policy differences over the years.
Powell, a Republican with extensive experience in Washington, is recognized as a centrist figure who favors bipartisan approaches. His tenure includes leadership at the Bipartisan Policy Center from 2010 to 2012, where he encouraged congressional Republicans toward compromise during budget conflicts with President Barack Obama. Subsequently, Obama appointed Powell to the Federal Reserve’s board in 2012, and President Trump elevated him to chairmanship in 2018. President Joe Biden renewed Powell’s appointment in 2022, further reflecting cross-party confidence.
During Trump’s first term, Powell maintained composure amid personal criticisms from the President, particularly about the Federal Reserve’s interest rate increases in 2018, choosing not to engage in public disputes with the White House. The generally robust economy at that time also helped insulate the Fed from political backlash.
Powell has frequently highlighted his Congressional support as a counterbalance to the President’s attacks. At a press conference in July, he emphasized the significance of the Fed’s independence from direct political influence, a principle that facilitates unpopular but necessary measures like raising interest rates to control inflation. "I think that’s pretty widely understood,” Powell remarked. "Certainly, it is in Congress.”
Powell’s calendar underscores his dedication to Congressional engagement. For instance, in the month following Trump’s inauguration, he held meetings or phone conversations with 27 senators across party lines. After providing testimony on Senate Banking Committee questions about renovations to Federal Reserve office buildings, Powell personally followed up with both the committee chair, Senator Tim Scott, and ranking member Senator Elizabeth Warren to discuss evolving costs.
The subpoenas served to the Fed pertain to Powell’s remarks regarding the roughly $2.5 billion renovation of two office buildings, a project that has drawn criticism from President Trump for its expense.
In his video response, Powell suggested that threats of criminal charges derive from the Federal Reserve setting interest rates based on objective assessments to serve the public interest, not according to presidential preferences.
President Trump has stated he was unaware of the investigation targeting Powell and, when asked on CBS News about whether the subpoenas were retaliatory, replied, "I can’t help what it looks like.” The President has pursued multiple officials he perceives as adversaries, including an unsuccessful attempt to remove Fed board member Lisa Cook, with the Supreme Court permitting her to remain and setting a hearing on the matter.
Not all legal pursuits initiated by the Trump administration have been sustained; cases against former FBI Director James Comey and New York Attorney General Letitia James were dismissed in courts.
Lev Menand, a Columbia University law professor and author on Federal Reserve matters, commented on the unfolding situation: "So far it looks like this has been a misstep for the administration. This attempt to go after Jay Powell with a potential criminal indictment is leading to significant resistance from elected officials even within the Republican Party.”