Powell has a way to stop Trump from intruding on the Fed until 2028: report

When U.S. Federal Reserve Chairman Jerome Powell revealed that he is the target of a criminal investigation by the U.S. Department of Justice (DOJ), a long list of Democrats rushed to his defense — especially Sen. Elizabeth Warren (D-Mass.) — and criticized President Donald Trump's politicization of the Fed. But some conservative Republicans are speaking out as well, including Sens. Lisa Murkowski (R-Alaska) and Thom Tillis (R-N.C.).

Powell's term as Fed chair ends in May, and Trump is hoping to appoint a MAGA loyalist as a replacement. But in a January 11 post on X, Tillis warned that he may oppose Trump's nominee.

The GOP senator posted, "If there were any remaining doubt whether advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none. It is now the independence and credibility of the Department of Justice that are in question. I will oppose the confirmation of any nominee for the Fed — including the upcoming Fed Chair vacancy — until this legal matter is fully resolved."

In an article published on January 14, Politico reporters Jasper Goodman, Victoria Guida and Jordain Carney stress that Trump's campaign against Powell has become much more than a debate on the Fed chair's performance — it has also become a debate on the role of the Federal Reserve itself.

"The Justice Department's move to investigate Fed Chair Jerome Powell is renewing lawmakers' focus on central bank independence as Trump inches closer to deciding who he wants to nominate as the next Fed chief," the Politico journalists explain. "And that could lead lawmakers to take aim at the frontrunner, National Economic Council Director Kevin Hassett, if he is nominated for Powell's position. Hassett has been a ubiquitous presence on TV, making the case for the president's economic agenda and his repeated calls to cut interest rates…. The new scrutiny on the Fed's political autonomy illustrates how the investigation into Powell could have an impact far beyond its outcome."

Goodman, Guida and Carney add, "The legal clash could disrupt the president's vision for who leads the Fed starting in May. And it could also compel Powell to stay on the Fed board beyond the expiration of his term as chair, depriving Trump of getting a pick for another seat until January 2028."

Tillis is saying that he may voting against Hassett if he becomes Trump's nominee to replace Powell as Fed chair. But a Republican senator, interviewed on condition of anonymity, told Politico that Tillis will likely "fold" if Hassett is nominated — as it would be "too big a deal" if Senate Republicans opposed Trump's Fed chair nominee.

Mark Spindel, chief investment officer at the firm Potomac River Capital, also believes that Hassett would be confirmed.

Spindel told Politico, "Hassett ticks every box that every standard Fed chair or nominee would tick. I still think he will get the president's nomination, and I think the president can work the phones pretty aggressively."

Read the full Politico article at this link.