After the Trump administration announced its decision to investigate Federal Reserve chair Jerome Powell, House Speaker Mike Johnson defended the president's actions while talking to reporters, even as other members of the Republican party condemn them.
Johnson told reporters that "if the investigation is warranted, then they'll have to play that out," but added he had not reviewed Powell's testimony and said it was "not really my lane," positioning himself as broadly deferential to prosecutors without endorsing any of the underlying allegations behind the investigation.
In a video statement issued on Sunday, Powell made the investigation public, stating that "The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President. This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation."
Johnson's defense of Trump's investigation into Powell comes as concern about the investigation surges within their own party. Republican Senator Thom Tillis of North Carolina, a member of the Senate Banking Committee, similarly backed blocking Trump's future Federal Reserve nominations until the matter is resolved.
Republican Senator Lisa Murkowski of Alaska also spoke out on social media to criticize their decision. She wrote on social media that after speaking with Powell, she believes "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."
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…
— Sen. Lisa Murkowski (@lisamurkowski) January 12, 2026
She also reiterated that the importance of the Federal Reserve's independence from the government and warned that "the stakes are too high to look the other way." Murkowski argued that if the Department of Justice truly believed the cost overruns justified a criminal probe, Congress should investigate the DOJ itself rather than undermine an institution central to the nation's economic stability.
Rep. French Hill, who chairs the House Financial Services Committee, said pursuing criminal charges against Powell would be "an unnecessary distraction," while Sen. Kevin Cramer said he did not believe Powell is a criminal and hoped the matter would soon be resolved.
The three most recent former Federal Reserve chairs, Janet Yellen, Ben Bernanke and Alan Greenspan, released also a joint statement describing the probe as an "unprecedented" assault that threatens the Fed's independence. They described the DOJ's actions as reported criminal inquiry into Federal Reserve Chair Jay Powell" and asserting that such prosecutions have no place in the United States, where central bank independence is considered foundational to maintaining price stability and financial credibility.
