Thune Issues Warning To Trump’s DOJ
Senate Majority Leader John Thune issued a sharp warning Monday as the Department of Justice moves forward with a criminal investigation involving Federal Reserve Chair Jerome Powell, cautioning that the case must be legitimate and resolved quickly to avoid damaging financial confidence.
Speaking to reporters on his way to the Senate floor, Thune said he has not reviewed the full case but stressed that any charges must be serious and supported by real evidence.
“I haven’t seen the case or the allegations,” Thune said. “But they better be real, and they better be serious.”
Concerns Over Market Stability
Later in the day, Thune expanded on his remarks, emphasizing the importance of protecting the independence of the Federal Reserve, which plays a critical role in shaping U.S. monetary policy and stabilizing global markets.
“This needs to be resolved quickly,” Thune said. “The Fed’s independence is something we have to protect, and it must operate without political interference.”
His comments come amid heightened sensitivity in financial markets already grappling with inflation, interest rates, and global economic uncertainty.
GOP Leaders Offer Different Views
Thune’s caution contrasted with remarks earlier Monday from House Speaker Mike Johnson, who defended the integrity of the Department of Justice and urged lawmakers to allow the investigation to proceed.
Johnson told reporters that the Justice Department is not being misused, arguing that such conduct occurred during the Biden-Harris years.
Johnson said prosecutors should have full authority to investigate whether Powell violated the law during sworn testimony related to the Federal Reserve’s $2.5 billion headquarters renovation project in Washington, D.C.
Johnson said there are questions surrounding cost overruns and that those issues warrant review, adding that he will withhold judgment for now.
Senate Republicans Voice Unease
Despite Johnson’s defense, concern is growing among Senate Republicans that the investigation could undermine the Fed’s credibility at a sensitive moment for the economy.
Thune acknowledged internal worries involving Attorney General Pam Bondi and U.S. Attorney for Washington, D.C., Jeanine Pirro.
“There cannot even be the appearance of political interference with the Fed,” Thune said.
He also warned the controversy could complicate Senate confirmation of future Federal Reserve nominees put forward by President Donald Trump.
Banking Committee Pushback Intensifies
Thune confirmed he recently spoke with Sen. Thom Tillis, a senior member of the Senate Banking Committee, who has taken a tougher stance.
In a statement, Tillis warned that both the Federal Reserve’s independence and the Justice Department’s credibility are now being tested.
Tillis said he will refuse to advance any Federal Reserve nominees, including the upcoming chair appointment, until the investigation is brought to a conclusion.
Tillis said he would vote against confirming any Federal Reserve nominee until the legal issue is fully settled.
Why This Matters
The Federal Reserve sits at the center of America’s financial system. Any prolonged uncertainty surrounding its leadership risks unsettling markets, raising borrowing costs, and undermining confidence at home and abroad.
Republican leaders now face a delicate balancing act: ensuring accountability under the law while preserving the independence of the nation’s central bank.
