Powell Probe Sparks Bipartisan Backlash and Fresh Questions About DOJ Independence

1h ago•3 min read

The DOJ's criminal inquiry into Fed Chair Jerome Powell prompted bipartisan concern, with Republicans warning the investigation could threaten Fed independence and Democrats calling it politically motivated. U.S. Attorney Jeanine Pirro said subpoenas were issued over communication issues; Powell's Senate testimony about $2.5 billion in Fed building renovations is under review. Markets fell early but largely stabilized by midday. The newsletter also covers urgent developments in Iran, a high-profile Supreme Court transgender-athlete case, Meta's appointment of Dina Powell McCormick, and Mary Peltola's Senate campaign in Alaska.

The Justice Department's criminal inquiry into Federal Reserve Chair Jerome Powell landed awkwardly in Washington on Monday, prompting rare bipartisan concern and renewed debate about the independence of the DOJ. Powell confirmed he is under investigation after subpoenas were issued related to testimony about roughly $2.5 billion in renovations at two Federal Reserve buildings.

DOJ Inquiry and Pirro's Response

U.S. Attorney Jeanine Pirro, who reportedly approved the inquiry last year, sought to temper the rhetoric around the subpoenas. She said the orders were "not a threat" but a response to what she described as poor communication from the Fed. "The word 'indictment' has come out of Mr. Powell's mouth, no one else's," Pirro said, adding that decisions would be made "based on the merits, nothing more and nothing less."

Secretary of State Marco Rubio speaks during a news conference at the State Department, Dec. 19, 2025, in Washington. (Julia Demaree Nikhinson, Associated Press)

Republican Pushback

Several Republican senators and House members publicly defended Powell or expressed skepticism about the probe. North Carolina Sen. Thom Tillis said he would not support advancing additional Fed nominees while the inquiry is pending and warned the move risks undermining Fed independence. Sen. Lisa Murkowski backed Tillis and called for a congressional review of DOJ actions. Other Republicans, including Senate Majority Leader John Thune and Sen. John Kennedy, urged that any allegations be serious and substantiated before drawing conclusions.

White House, Treasury and Market Reaction

White House officials defended President Trump’s public criticism of Powell but Trump told NBC News he did not "know anything about" the investigation. Reports indicated Treasury Secretary Scott Bessent privately criticized the probe as having "made a mess," though the Treasury denied a rift with the president. Financial markets reacted modestly: the Dow opened down about 300 points but largely stabilized by midday.

Former counselor to the President of the United States Dina Powell McCormick smiles during the Women’s Global Development and Prosperity (W-GDP) Initiative Roundtable, Sept. 23, 2019, in New York. (Sarah Stier, Associated Press file)

Broader Political Fallout

Democrats and other critics called the probe politically motivated, while some Republicans urged patience and a full review. Powell defended Fed decisions as the product of professional judgment about the national interest rather than political preference. Analysts noted the market’s muted response compared with earlier episodes of political turmoil.

Other Top Stories

Iran: The State Department urged U.S. citizens to leave Iran amid nationwide protests over economic conditions and currency collapse. The administration is weighing multiple responses, from increased sanctions and tariffs to potential military options; senior national security officials planned a briefing for the president.

Rep. Mary Peltola (D-Alaska) speaks during the U.S. Capitol Christmas tree lighting ceremony on the West Front of the Capitol, Dec. 3, 2024, in Washington. (Mark Schiefelbein, Associated Press file)

Supreme Court: The Court will hear challenges to Idaho and West Virginia laws that bar transgender girls from competing on female sports teams—cases that could affect similar bans in many states and raise questions under the Equal Protection Clause.

Legal Clash: Sen. Mark Kelly sued Defense Secretary Pete Hegseth after the Pentagon sought to demote and censure him for appearing in a video encouraging service members to refuse unlawful orders. Kelly argues the actions violate constitutional protections and his due process rights.

Dozens of Barbie dolls are displayed at the Mattel showroom at Toy Fair in New York in 2018. (Mark Lennihan, Associated Press file)

Business & Politics: Meta named former Trump deputy national security adviser Dina Powell McCormick as president and vice chair. Her appointment drew attention because of her prior White House role and political ties. Former Rep. Mary Peltola announced a bid for U.S. Senate in Alaska, setting up a race with incumbent Sen. Dan Sullivan in a state that typically leans Republican.

Cultural Note: Mattel introduced an autistic Barbie developed with the Autistic Self Advocacy Network; the doll reflects some expressions of autism such as averted eye contact and articulating joints designed to acknowledge stimming.

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