Republican lawmakers break from US president on Fed chair indictment

In January 2026, several Republican lawmakers, including Senator Lisa Murkowski, publicly opposed President Trump's actions against Federal Reserve Chairman Jerome Powell. This followed a Justice Department threat to indict Powell, which Murkowski and others viewed as an attempt to undermine the Fed's independence. Murkowski expressed support for a plan to block Trump's Fed nominees and called for Congress to investigate the Justice Department's actions. Former Fed chairs also condemned the threat as an unprecedented attack on the central bank's independence. The conflict arises from Trump's increasing pressure on the Fed to lower interest rates, a practice seen as violating the central bank's autonomy. Powell's term is set to expire in May, with Kevin Hassett considered a potential replacement.

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