Trump faces "counterattack" against the Fed! Republican officials strongly criticize judicial investigations threatening central bank independence.

U.S. President Trump faced backlash from both parties on Sunday night. Prior to this, Federal Reserve Chairman Jerome Powell criticized the Justice Department for initiating a grand jury investigation, calling it an excuse to pressure and intimidate the Fed. Key Republican members of the Banking Committee, including Senator Thom Tillis who is not seeking re-election, vowed to oppose any nominations to the Fed by Trump until this matter is resolved. "If there were any doubts before about whether advisors within the Trump administration were actively working to end the Fed's independence, those doubts should now be erased," Tillis said in a statement. "What is now being questioned is the independence and credibility of the Justice Department itself." Tillis, who also serves as a member of the Judiciary Committee with oversight of the Justice Department, stated, "Until this legal matter is thoroughly resolved, I will oppose the confirmation of any nominations to the Federal Reserve - including the upcoming vacancy of Fed Chair." For months, Trump has expressed a desire for the Fed to quickly and significantly lower interest rates. Several government departments have targeted current Fed board members, including Biden nominee Lael Brainard and current Chair Powell. In a written and video statement released on Sunday evening, Powell stated that this action is related to his June testimony before Congress about the ongoing renovation of the Fed headquarters. However, he pointed out that this move should be viewed in the broader context of ongoing government threats and pressure. Powell added, "This is about whether the Fed can continue to set interest rates based on evidence and economic conditions - or whether monetary policy will be forced to succumb to political pressure or intimidation." Trump denied knowledge of the Justice Department's investigation into the Fed during an interview on Sunday. Tillis's threat could pose a potential obstacle for Trump in his attempts to coerce the Fed. Tillis's opposition is likely to result in a deadlock in the Banking Committee's vote on any Fed nominations, as the committee has a partisan split of 13-11. Under current Senate rules, a controversial nomination must receive 60 votes to be brought to a full Senate vote from the committee. Democrats quickly issued condemnations. "Trump not only wants to nominate a new Fed chair, but also wants to completely remove Powell from the board, in order to complete his corrupt takeover of our central bank," wrote Democratic Chief Banking Committee member Elizabeth Warren. "He is abusing the law like a dictator, just to make the Fed serve him and his billionaire friends. The Senate must not allow any of Trump's Fed nominees to be confirmed." Senate Democratic Leader Chuck Schumer said that undermining the Fed's independence threatens economic stability. "Anyone who remains independent and does not bow down to Trump will be investigated," he said. Florida Republican Congresswoman Anna Paulina Luna, who had sought to investigate Powell's testimony on the Fed building renovations before Congress, welcomed the news on social media. "Unelected bureaucrats cannot escape accountability," she wrote. Tillis's swift retaliation comes after a series of Republicans in the House and Senate defied Trump, including last week's House vote to extend Biden-era health care subsidies and the Senate vote to advance legislation to end military action in Venezuela.