A prominent Republican senator has pledged to obstruct all future nominations to the Federal Reserve's board, following the dramatic opening of a criminal investigation into the central bank's chair, Jerome Powell. The move intensifies a fierce political battle over the cherished independence of the US monetary authority.
A Senator's Ultimatum: Blocking Nominations
Thom Tillis, the Republican senator from North Carolina, issued a stark warning on Sunday. As a member of the influential Senate Banking Committee, which oversees appointments to the Fed, Tillis declared he would oppose any nominee for the Federal Reserve, including the crucial upcoming chair vacancy. He stated this blockade would remain in force "until this legal matter is fully resolved."
In a post on the social media platform X, Tillis framed the Justice Department's actions as a direct assault on institutional autonomy. "If there were any remaining doubt whether advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none," he wrote. He further argued that the probe now calls into question "the independence and credibility of the Department of Justice."
The Investigation and Political Pressure Campaign
The senator's forceful response came just days after the Justice Department subpoenaed the Federal Reserve on Friday. The investigation is reportedly rooted in testimony Powell gave to the Senate in June concerning the escalating costs of renovating the Fed's headquarters.
Powell confirmed the subpoena on Sunday and characterised the probe as part of a broader pressure campaign. He linked it to the Trump administration's evident frustration with the Fed's current interest rate policy. "No one – certainly not the chair of the Federal Reserve – is above the law," Powell said in a video statement. "But this unprecedented action should be seen in the broader context of the administration's threats and ongoing pressure."
Trump's Stance and the Threat to Fed Autonomy
Since returning to the White House in January 2025, former President Donald Trump has waged a persistent, year-long campaign urging Powell to cut interest rates. He has repeatedly hinted at the possibility of removing the Fed chair, though he has not yet taken that step. Powell's current term is set to expire in May, and Trump told Politico last month that he would judge Powell's potential successor on their willingness to lower rates immediately.
When questioned by NBC News on Sunday about the investigation, Trump claimed he had no knowledge of it but criticised Powell's performance. "I don't know anything about it, but he's certainly not very good at the Fed, and he's not very good at building buildings," the president remarked. He denied the subpoenas were related to interest rates, stating, "What should pressure him is the fact that rates are far too high. That's the only pressure he's got."
The Federal Reserve is designed to operate as an independent entity within government, a structure intended to shield crucial monetary policy decisions from short-term political interference. Economists widely regard this independence as a cornerstone of economic stability and market credibility.
In his statement, Powell defended the Fed's position, writing: "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." The standoff sets the stage for a major constitutional and economic clash in the coming months.
