A Senate Republican again plans to act as a roadblock to President Donald Trump, this time against any potential replacement for Federal Reserve Chair Jerome Powell.
Sen. Thom Tillis, R-N.C., announced that he would block any future nominee to serve as chair of the Fed following the revelation that Powell was under criminal investigation for testimony he gave regarding the renovation at the Federal Reserve.
‘If there were any remaining doubt whether advisors within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none,’ Tillis said on X. ‘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,’ he continued.
Tillis’ decision comes with weight — as a member of the Senate Banking Committee, he would get an immediate say on who does and doesn’t pass muster to be the next chair of the Federal Reserve.
And that’s a reality that will likely soon play out, given that Powell’s term as chair expires in May, though he is still slated to stay on the central bank’s board of governors until 2028.
It’s also not the first time he’s stood directly in the path of Trump. Tillis last week announced that he would be blocking all future Department of Homeland Security (DHS) nominees until DHS Secretary Kristi Noem appears before the Senate Judiciary Committee.
A DHS spokesperson told Fox News Digital, ‘Secretary Noem testified on Capitol Hill less than a month ago and remains committed to transparency and continued engagement with Congress.’
‘While the Department does not currently have any nominees pending before the Senate, we hope senators will refrain from holding President Trump’s appointments in a way that could compromise our national security,’ they said.
The lawmaker’s line in the sand came after the U.S. Attorney’s Office for the District of Columbia launched an investigation into Powell over testimony he gave before the Senate Banking Committee last June regarding the renovation of the central bank’s Washington headquarters. The probe is focused on whether Powell lied to lawmakers about the scope of the project.
It comes after a year of tension between Powell and Trump, who has long sought to replace him atop the central bank. And notably, the renovation of the Federal Reserve’s building in the District is not on the taxpayer dime, but rather its own coffers.
‘This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings,’ Powell said in a video statement.
‘The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,’ he continued. ‘This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether instead monetary policy will be directed by political pressure or intimidation.’
Sen. Elizabeth Warren, D-Mass., the top ranking Democrat on the Senate Banking Committee, similarly panned the criminal investigation into Powell and charged that Trump sought to ‘install another sock puppet to complete his corrupt takeover of America’s central bank.’
‘Trump is abusing the authorities of the Department of Justice like a wannabe dictator, so the Fed serves his interests, along with his billionaire friends,’ Warren said in a statement. ‘This Committee and the Senate should not move forward with any Trump nominee for the Fed, including Fed Chair.’
The Fed tweaked interest rates in December, dropping them by 0.25%, marking the third straight time the central bank slashed rates. Still, the cut was not enough for Trump, who demanded a sharper drop.
In the aftermath, Trump said that he would seek a new Federal Reserve chair that would slash interest rates ‘by a lot.’
‘I’ll soon announce our next chairman of the Federal Reserve, someone who believes in lower interest rates, by a lot, and mortgage payments will be coming down even further,’ Trump said.