Lawmakers warn DOJ subpoenas risk undermining Federal Reserve independence
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Summary
During a House task force hearing, several members accused the Department of Justice and the White House of threatening the Federal Reserve's independence through grand jury subpoenas and public pressure. Witnesses urged reliance on legal protections and court review, while members sought to enter supporting documents into the record.
Members of the House Financial Services task force spent a significant portion of a hearing on the Federal Reserve's balance sheet pressing witnesses and each other over recent Department of Justice subpoenas and public pressure directed at Fed officials.
Ranking Member Joaquin Vargas (as recorded in the transcript) told the panel that "the Department of Justice has threatened Chairman Powell with a criminal indictment," and described the actions as a "full frontal assault" on the Fed's independence. Several members — including Rep. Maxine Waters, Rep. Sean Casten and others — entered statements and documents into the hearing record condemning the reported actions and expressing solidarity with Fed leaders.
Witnesses said the Fed has legal protections for its independence but acknowledged that the allegation of political pressure is serious. Dr. Bill English said he "trust[ed] that it won't" lead to a change in Fed behavior, adding that the Fed has legal protections and the courts will play a role; several witnesses declined to discuss specific DOJ actions in detail during the hearing and said they would respond in writing.
Members used unanimous consent several times to enter materials into the record related to the attacks, including a list of statements from former Fed chairs and an international statement of support from other central-bank leaders. The chair ordered these materials entered "so ordered" after members voiced no objections.
Lawmakers asked whether the DOJ's reported subpoenas and political pressure could raise inflation expectations, harm the dollar's reserve role, or otherwise increase costs for ordinary households. Witnesses warned that undermining central-bank independence can raise average inflation over time and increase volatility in prices and interest rates, which would affect mortgage rates, retirements and household budgets.
The committee invited written follow-ups; witnesses were asked to return detailed responses by Feb. 18, 2026. No formal legislative action (beyond entering documents) was taken at the hearing.
The hearing concluded with the chair thanking witnesses and adjourning.
