Republican Pushback Sparks Debate on Central Bank Autonomy
A criminal inquiry into the Federal Reserve chair has ignited a fierce political debate, with senior Republican lawmakers breaking ranks to condemn what they describe as an overreach of executive power. The Department of Justice's decision to convene a grand jury has drawn sharp criticism for undermining the Fed's long-standing independence.
Senator Thom Tillis of North Carolina announced Sunday he would oppose all presidential nominees to the Fed until the investigation concludes. His stance was quickly echoed by Senator Lisa Murkowski of Alaska, who labeled the probe a 'coercive tactic disguised as legal process' and called for congressional oversight of the DOJ itself.
Diverging Responses Within the Party
- Thom Tillis: Halts support for nominations, prioritizing institutional integrity
- Lisa Murkowski: Denounces investigation as political intimidation, urges accountability
- Kevin Cramer: Stops short of full condemnation but rejects criminal allegations, urges swift resolution
The varying tones highlight internal Republican tensions over the balance of power. Though not on the Senate Banking Committee, Murkowski’s position adds weight to growing bipartisan concern. Experts warn that eroding trust in the Fed’s neutrality could destabilize financial markets and weaken policy credibility amid economic uncertainty.