Republican support boosts the Fed’s Powell in fight with Trump
AP News • • business
Key Points:
- President Donald Trump is escalating pressure on Federal Reserve Chair Jerome Powell, including Justice Department subpoenas and threats of criminal charges, but Senate Republicans are defending Powell and the Fed's independence despite Trump being from their party.
- Powell responded by accusing the administration of using "pretexts" to coerce the Fed into cutting interest rates, and has leveraged his relationships with Republican senators to build support amid the controversy.
- Key Republican senators, including Thom Tillis, Lisa Murkowski, and Dave McCormick, have publicly supported Powell, emphasizing the importance of an independent Federal Reserve and expressing skepticism about the criminal investigation.
- The subpoenas relate to Powell's handling of a $2.5 billion renovation of Fed office buildings, which Trump has criticized as
