2 key GOP Senators say they want a stop on Fed nominees following DOJ threats against Powell
Sens. Thom Tillis of North Carolina and Lisa Murkowski of Alaska quickly answered the question Monday of whether any Republicans would push back on the Justice Department's criminal probe of Federal Reserve Chair Jerome Powell.
Tillis was out first Sunday night with a statement saying he will seek to put a stop to all of Trump's central bank nominees over the issue.
"I will oppose the confirmation of any nominee for the Fed — including the upcoming Fed Chair vacancy — until this legal matter is fully resolved," the retiring GOP senator wrote.
Murkowski followed with her own statement on Monday, saying that she spoke with Powell on Monday morning and called the administration's investigation "nothing more than an attempt at coercion," adding that Tillis "is right in blocking any Federal Reserve nominees until this is resolved."
Tillis's stance is doubly significant because he sits on the Senate's Banking Committee, where confirmation hearings for Trump's Federal Reserve picks will be held and the first votes will take place.
The Senate panel currently has 13 Republicans and 11 Democrats, meaning that if Tillis remains opposed — and all Democrats vote against any Trump pick — it would lead to a 12-12 tie. That scenario doesn't mean the pick would be blocked from reaching the Senate floor for a final vote, but it would make this key committee step much bumpier.
As Tobin Marcus, head of US policy and politics at Wolfe Research, outlined in a note to clients, a Tillis-led deadlock could be overruled by Trump allies, "but it would require some major gymnastics including bypassing the filibuster — so even as a lone retiring moderate, he can credibly threaten Trump's nominee."
Murkowski has also shown a willingness to follow through on her pledges to stand up to Trump. In September, she joined with Democrats to vote no on Stephen Miran's short-term nomination.
Wolfe said other Republicans could plausibly join the opposition to Trump's picks, calling the move from Trump's Justice Department "a bit counterproductive on its own terms."
Read more: How much control does the president have over the Fed and interest rates?
Sizable Capitol Hill reaction
Alongside Tillis, Democrats on the Senate's banking panel are expected to oppose any upcoming Trump picks for the central bank en masse.
Elizabeth Warren, the top Democrat on the panel, quickly said Monday that "this Committee and the Senate should not move forward with any Trump nominee for the Fed, including Fed Chair."
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