Powell Draws Bipartisan Backing After Justice Department Inquiry

Jerome H. Powell, chair of the Federal Reserve, this week drew broad bipartisan support after the Justice Department opened a criminal investigation and the Fed received grand jury subpoenas on Jan. 9. Powell had expected to find allies because of years of deliberate relationship-building on Capitol Hill.

He was in touch with numerous lawmakers after the subpoenas, including Senators Susan M. Collins, Lisa Murkowski and Kevin Cramer; Mr. Cramer said he spoke with Mr. Powell before the Fed released an extraordinary video confronting the Trump administration. The response to the investigation included Republican senators who denounced the move, Senator Thom Tillis saying he would block any attempt by the president to nominate a new Fed chair, backing from Senator John Thune, statements from every living former Fed chair and Treasury secretaries from both parties, and public defense from Wall Street figures such as Jamie Dimon.

The outpouring reflected concern about the threat to the central bank’s independence and Powell’s popularity in and out of Washington. According to a person familiar with the matter, support went well beyond Powell’s initial list. Academics and former officials noted that strong political backing could protect him; Sarah Binder of George Washington University said, “The backlash is going to protect Powell.” Powell’s term as chair ends in May, though he remains a governor for two more years, and his future has become central to the dispute.

Key Topics

Politics, Jerome H. Powell, Federal Reserve, Justice Department, Donald Trump, Senate Banking Committee