Senate Majority Leader John Thune (R-S.D.) publicly pressured the Trump administration on Wednesday to bring a swift conclusion to the Justice Department's ongoing criminal investigation of Federal Reserve Chairman Jerome Powell. Thune argued that allowing the probe to linger is not in the national interest.
"I think it's in everybody's best interest to wrap up the investigation. I've said that before, it would be better if it winds down," Thune stated, marking a notable public intervention by a senior Republican into a politically charged legal matter.
Nomination in the Balance
The call comes as President Trump's nominee to replace Powell, former Fed governor Kevin Warsh, faces a confirmation hearing next week. Powell's term as chair expires on May 15. Thune expressed enthusiasm for Warsh, calling him "very qualified," but warned the unresolved investigation creates a significant roadblock.
That roadblock is being enforced by Sen. Thom Tillis (R-N.C.), a member of the Senate Banking Committee. Tillis has vowed to stall Warsh's nomination in committee until the Justice Department either ends its probe of Powell or presents credible evidence of criminal wrongdoing or financial mismanagement at the central bank.
"I think at some point they're going to have to deal with the committee and they're going to have to deal with Tillis," Thune cautioned the administration. "It would be great if we could wind up prior business before that happens."
The Investigation and Presidential Pressure
The DOJ investigation centers on the renovation of the Federal Reserve's Washington headquarters and whether Powell was truthful in his June testimony before the Senate Banking Committee. The probe escalated this week when federal prosecutors made an unannounced attempt to tour the Fed construction site.
President Trump, who has long feuded with Powell over monetary policy, took a starkly different position from Thune on Wednesday. In a Fox Business interview, Trump defended the investigation and threatened to fire Powell if he does not depart on time, despite having previously held back. "I've wanted to fire him, but I hate to be controversial," Trump said, adding that the probe should continue to expose potential "corruption" and "incompetence." This follows the president's recent escalated rhetoric threatening Powell's removal.
While Powell's chairmanship ends next month, his term as a Fed governor extends to January 2028, complicating any dismissal effort. Thune indicated he has communicated his concerns to the White House, setting up a clear divergence between key Senate Republicans and the president's stated preferences on handling the central bank's leadership.
The standoff highlights the intense political pressures surrounding the traditionally independent Federal Reserve. The outcome will determine leadership of the world's most powerful central bank amid economic uncertainty and could signal broader shifts in the GOP's approach to federal institutions as the administration continues to advance its policy priorities across government.
