Stunned Republicans tread carefully on DOJ's Powell investigation

Senate Republican leaders are proceeding very carefully on the Department of Justice's criminal probe into Fed Chair Jerome Powell. Why it matters: After last week's war powers resolution vote, Republicans know they cross President Trump at their own peril. At the same, they appear ready to confront Trump on the Fed's ability to act independently of political pressure.The investigation "needs to be resolved quickly, because the Fed's independence in shaping monetary policy in the country is something that we need to ensure proceeds without political interference," Senate Majority Leader Thune (R-S.D.) told reporters.Senate Majority Whip John Barrasso (R-Wyo.) sounded a similar note. "I've always supported an independent Fed. We'll see what they have and what they present," he told reporters.Zoom in: GOP senators on the banking committee appeared highly skeptical that Powell would have violated the law in his congressional testimony last summer about costs overruns as it related to a renovation project.Sen. Dave McCormick (R-Penn.), a Trump ally and member of the committee, said he does "not think Chairman Powell is guilty of criminal activity."Sen. John Kennedy (R-La.) another member of the banking committee, was also circumspect."I know Chairman Powell pretty well. I would be stunned if he had done anything wrong," he told reporters. "We need this like we need a hole in the head."What we're watching: Sens. Susan Collins (R-Maine) and Lisa Murkowski (R-Alaska) said they spoke to Powell after news of the investigation broke."I have always known him to be a man of integrity," Collins said.The other side: Some rank-and-file senators appeared less willing to give Powell the benefit of the doubt."Whether Chairman Powell was unprepared for his testimony or intentionally misled Congress about the Fed's extravagant spending, the American people deserve answers," Sen. Cynthia Lummis (R-Wyo.) said."I will wait for the DOJ to release its findings before commenting further."The big picture: House Speaker Mike Johnson (R-La.) defended the DOJ probe and said if "Powell is innocent, then he can prove that." Senate Minority Leader Chuck Schumer (D-N.Y.) said in a statement the probe is another example of "Trump's assault on the Fed's independence." And House Minority Leader Hakeem Jeffries (D-N.Y.) said on X there is "zero basis to criminally target" Powell, accusing the DOJ of being "filled with sick political hacks."The bottom line: Sen. Rick Scott (R-Fla.), one of Powell's most consistent critics, didn't seize on the criminal probe to attack Powell."I don't know enough about the facts. I didn't watch that testimony," Scott told reporters.