NEW: ‘RINO’ GOP Rep. Underneath Hearth For Coming To Jerome Powell’s Protection
A growing rift inside the Republican Party is coming into sharper focus as some GOP lawmakers publicly defend Federal Reserve Chair Jerome Powell amid a Justice Department investigation that many conservatives see as long overdue accountability.
Rep. Mike Lawler, R-(N.Y.) is now facing backlash from grassroots conservatives and MAGA-aligned voices after breaking with the party’s base to defend Powell, even as frustration continues to mount over inflation, high interest rates, and what critics view as years of mismanagement at the Federal Reserve.
Lawler, who sits on the House Financial Services Committee, told Politico that while he has serious disagreements with Powell’s record, he opposes any pressure campaign against the Fed.
“While I fundamentally believe Chairman Powell was late in addressing inflation under Joe Biden and has been woefully slow in lowering interest rates over the past year, the independence of the Federal Reserve is paramount and I oppose any effort to pressure them into action,” Lawler said.
That statement immediately set off alarm bells among conservative activists, who argue that Fed “independence” has become a shield for unelected bureaucrats whose decisions have hammered working Americans with soaring prices and borrowing costs.
Powell revealed Sunday that the Department of Justice is investigating him over statements he made to Congress related to costly renovations at the Federal Reserve’s Washington headquarters. Powell suggested the probe was politically motivated and tied to President Donald Trump’s criticism of the Fed for failing to cut interest rates more aggressively.
US Representative Mike Lawler speaks during a press briefing at Columbia University in New York on April 24, 2024.
Powell added that the Federal Reserve would cooperate fully with the inquiry while continuing its mandate to promote maximum employment, stable prices, and moderate long-term interest rates. He also noted that the renovation project has been subject to regular audits and oversight, with all expenditures documented in accordance with federal guidelines.
The investigation has split Republicans on Capitol Hill. House Financial Services Chairman French Hill, (R-AK) rushed to Powell’s defense, calling the probe an “unnecessary distraction” that could undermine monetary policy. Hill praised Powell’s integrity and public service, even while admitting they have had policy disagreements.
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Other Republicans were far less forgiving.
Sen. Kevin Cramer, R-(N.D) said Powell has been evasive with Congress, particularly regarding the ballooning costs of the renovation project, though he stopped short of accusing Powell of criminal conduct.
“Jerome Powell is a bad Fed Chair who has been elusive with Congress,” Cramer said. “I do not believe however, he is a criminal.”
Sen. Lisa Murkowski, R-(AK) went further, accusing the administration of using the DOJ as a coercive tool. Murkowski said the investigation threatens the stability of financial markets and warned that Congress should scrutinize the Justice Department itself if cost overruns are the basis for the probe.
Behind closed doors, the issue is creating tension as Senate Banking Republicans prepare to meet to discuss major cryptocurrency legislation.
“There will be a lot of chatter,” one Republican told Politico. Not all Republicans are eager to shut the door on the probe, however.
Whether the Powell probe fizzles out or escalates further, the fallout is exposing deep divisions within the Republican Party, and lawmakers like Lawler are learning that defending the Fed may come at a political cost.