Tillis pledges to block Trump’s Federal Reserve nominee over Powell investigation

A Senate Republican is as soon as once more planning to behave as a roadblock to President Donald Trump, this time towards a possible alternative for Federal Reserve Chairman Jerome Powell.

Sen. Thom Tillis, R-N.C., introduced he would block any future nominee to function Fed chairman following the revelation that Powell was beneath prison investigation for his testimony on the Federal Reserve renovation.

“If there have been any doubt that advisers inside the Trump administration are actively pushing to finish the independence of the Federal Reserve, there needs to be no extra now,” Tillis mentioned on X. “It’s now the independence and credibility of the Division of Justice which can be at stake.”

FEDERAL RESERVE CHAIRMAN POWELL UNDER CRIMINAL INVESTIGATION INTO LOFT RENOVATION

Senator Thom Tillis, R-N.C., questions Federal Reserve Chairman Jerome Powell throughout a Senate Banking, Housing and City Affairs Committee listening to on the Dirksen Constructing in Washington, June 25, 2025. (Tom Williams/CQ-Roll Name, Inc. by way of Getty Photographs)

“I’ll oppose the affirmation of any nominee to the Fed – together with the upcoming emptiness for Fed Chairman – till this authorized matter is totally resolved,” he continued.

Tillis’ resolution carries loads of weight: As a member of the Senate Banking Committee, he would instantly have a say in who does and doesn’t cross the take a look at to change into the subsequent chairman of the Federal Reserve.

And that is a actuality that can seemingly change into actuality quickly, as Powell’s time period as chairman ends in Might, though he’s scheduled to stay on the central financial institution’s board of governors till 2028.

Additionally it is not the primary time that he has straight stood in Trump’s approach. Tillis introduced final week that he would block all future Division of Homeland Safety (DHS) nominees till DHS Secretary Kristi Noem appeared earlier than the Senate Judiciary Committee.

A DHS spokesperson advised Fox Information Digital: “Secretary Noem testified on Capitol Hill lower than a month in the past and stays dedicated to transparency and continued engagement with Congress.”

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Federal Reserve Chairman Jerome Powell speaks on the Federal Reserve in Washington, December 10, 2025. (Jacquelyn Martin/AP Photographs)

“Whereas the Division at the moment has no nominees pending earlier than the Senate, we hope that Senators will chorus from holding out on President Trump’s nominations in a fashion that might jeopardize our nationwide safety,” they mentioned.

The lawmaker’s line within the sand got here after the U.S. Lawyer’s Workplace for the District of Columbia launched an investigation into Powell over testimony he gave final June earlier than the Senate Banking Committee on the renovation of the central financial institution’s headquarters in Washington. The investigation focuses on whether or not Powell lied to lawmakers in regards to the scope of the challenge.

It comes after a yr of stress between Powell and Trump, who has lengthy sought to interchange him on the prime of the central financial institution. And remarkably, the renovation of the District’s Federal Reserve constructing is just not at taxpayer expense, however reasonably at its personal expense.

“This new risk is just not about my testimony final June or in regards to the renovation of the Federal Reserve buildings,” Powell mentioned in a video assertion.

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President Donald Trump speaks throughout a gathering with oil and gasoline executives within the East Room of the White Home in Washington, January 9, 2026. (Maxine Wallace/The Washington Put up by way of Getty Photographs)

“The specter of prison prosecution is a results of the Federal Reserve setting rates of interest primarily based on our greatest estimate of what’s going to profit the general public, reasonably than following the president’s preferences,” he continued. “That is about whether or not the Fed will have the ability to proceed setting rates of interest primarily based on proof and financial situations, or whether or not financial coverage will as a substitute be guided by political stress or intimidation.”

Sen. Elizabeth Warren, D-Mass., the highest Democrat on the Senate Banking Committee, equally analyzed the prison investigation into Powell and accused Trump of putting in “one other sock puppet to finish his corrupt takeover of the U.S. central financial institution.”

“Trump is abusing the Justice Division authorities like a wannabe dictator, so the Fed is serving his pursuits, alongside together with his billionaire mates,” Warren mentioned in an announcement. “This committee and the Senate shouldn’t transfer ahead with any Trump nominee for the Fed, together with the Fed chairman.”

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The Fed adjusted rates of interest in December, chopping them by 0.25%. This was the third time in a row that the central financial institution minimize rates of interest. Nonetheless, the discount was not sufficient for Trump, who demanded a sharper decline.

Within the aftermath, Trump mentioned he would search for a brand new Federal Reserve chairman who would decrease rates of interest “loads.”

“I’ll quickly announce our subsequent chairman of the Federal Reserve, somebody who strongly believes in decrease rates of interest, and mortgage prices will fall even additional,” Trump mentioned.