A Republican senator has vowed to block all future Federal Reserve nominations, citing an ongoing investigation into Fed Chairman Jerome Powell. North Carolina Senator Thom Tillis, a member of the Senate Banking Committee, announced his opposition to any nominee, including the next Fed chair, until the probe is resolved.
Tillis stated that the investigation, led by the Department of Justice, should have no bearing on the Fed's independence and credibility. He also claimed that the administration's actions amount to "coercion," implying that the department of justice is being pressured into investigating Powell.
Alaska Senator Lisa Murkowski echoed Tillis' sentiments, saying that she spoke with Powell Monday morning and expressed her concerns about the investigation being an attempt at coercion by the administration. She suggested that Congress should investigate the Department of Justice instead.
The controversy stems from a recent subpoena issued to the Federal Reserve as part of the ongoing probe into Powell's testimony before the Senate in June about the Fed's headquarters renovation costs. The Department of Justice claims that the pressure campaign linked to the administration's frustration with interest rate policy is driving this investigation.
Powell, however, defended his actions and stated that "no one – certainly not the chair of the Federal Reserve – is above the law." He emphasized that the probe should be viewed in the broader context of the administration's threats and ongoing pressure on the Fed.
President Donald Trump also weighed in on the matter, criticizing Powell's performance and stating that he had no knowledge of the investigation. However, he repeatedly suggested that interest rates are too high and implied that the public is pressuring Powell to cut rates immediately.
The Federal Reserve operates as an independent entity within government, intended to shield monetary policy from political interference. Central bank independence is considered essential by economists for maintaining economic stability and credibility.
Tillis stated that the investigation, led by the Department of Justice, should have no bearing on the Fed's independence and credibility. He also claimed that the administration's actions amount to "coercion," implying that the department of justice is being pressured into investigating Powell.
Alaska Senator Lisa Murkowski echoed Tillis' sentiments, saying that she spoke with Powell Monday morning and expressed her concerns about the investigation being an attempt at coercion by the administration. She suggested that Congress should investigate the Department of Justice instead.
The controversy stems from a recent subpoena issued to the Federal Reserve as part of the ongoing probe into Powell's testimony before the Senate in June about the Fed's headquarters renovation costs. The Department of Justice claims that the pressure campaign linked to the administration's frustration with interest rate policy is driving this investigation.
Powell, however, defended his actions and stated that "no one – certainly not the chair of the Federal Reserve – is above the law." He emphasized that the probe should be viewed in the broader context of the administration's threats and ongoing pressure on the Fed.
President Donald Trump also weighed in on the matter, criticizing Powell's performance and stating that he had no knowledge of the investigation. However, he repeatedly suggested that interest rates are too high and implied that the public is pressuring Powell to cut rates immediately.
The Federal Reserve operates as an independent entity within government, intended to shield monetary policy from political interference. Central bank independence is considered essential by economists for maintaining economic stability and credibility.
It seems like the Department of Justice is being pressured into investigating Powell, which could be a big deal. But at the same time, if Congress isn't doing anything about it, then what's the point? 
And on the other hand, if Tillis and Murkowski are saying that the investigation should be looked into by Congress instead... that's kinda fair, I guess? 
On the flip side, Powell is saying that no one - not even him - is above the law, which is a good point. But then again, shouldn't he be worried about getting investigated if his actions are questionable? 
Ugh, my brain hurts just thinking about this...
... I mean, who needs independence when you're being scrutinized? 
On the other hand, I think it's crazy that Congress should be investigating the Department of Justice instead - shouldn't they be focusing on the administration's alleged coercion? 
What do we really know about this investigation anyway? Shouldn't we trust the Fed to make its own decisions? 
this all just seems so drama-filled, can't they just focus on the economy and interest rates already? i mean, it's not like we haven't had enough to deal with 
.
. We need to find a balance between giving the Fed the independence it needs and holding them accountable for their actions 
. It's not that simple, I know, but someone's gotta try 
.
Thom Tillis is being super reasonable about it though - the investigation should be separate from the Fed's independence 
I mean, if there's an investigation, let it go through its course without influencing anyone's decisions at the Fed. And can we pls talk about how Alaska Senator Lisa Murkowski brought up a good point? Congress should be investigating the DoJ instead of just stirring up trouble 
It's all so... complicated 
and what's with Powell's cool demeanor? Shouldn't he be getting some heat for this whole situation? The whole interest rate thing is also super sketchy 
can you believe this? 
. I mean, we're still dealing with exam stress in school, can't they just focus on our education instead of messing with the economy? 
. And what's up with President Trump saying interest rates are too high? 
Can't they just focus on finding a solution instead of trying to control the Fed? 
. The Fed's independence is super important for our economy, so we gotta be careful about politicizing it 
.