President Donald Trump’s path to reshaping the Federal Reserve hit a roadblock Sunday night, as Republican Senator Thom Tillis vowed to block every future Fed nominee—including the replacement for Chairman Jerome Powell—in response to a Justice Department criminal investigation into the current chair.
Tillis, a retiring lawmaker who sits on the powerful Senate Banking Committee, said the administration’s actions signal an effort to dismantle the central bank’s autonomy.
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“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,” Tillis wrote in a statement released shortly after news of the probe broke.
The North Carolina Republican warned that the investigation threatens more than just the Fed. “It is now the independence and credibility of the Department of Justice that are in question,” he added.
The Numbers Game
Tillis’s ultimatum poses a tangible threat to the President’s agenda. Republicans hold a slim 13-11 majority on the Senate Banking Committee. Without Tillis’s support, a Trump nominee would fail to advance in a party-line vote. While GOP leadership could attempt alternative procedural routes to bypass the committee, such moves are risky and could fail if opposition spreads within the party.
The stakes are high: Powell’s term as Chairman ends on May 15, 2026, creating a critical vacancy that Trump intends to fill.
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Powell Claims ‘Intimidation’
The senator’s revolt comes hours after Powell released a video statement accusing the Trump administration of using a perjury investigation to “manipulate” interest rates. Powell confirmed he is being investigated following a referral from Rep. Anna Paulina Luna (R-FL), who alleges he lied to Congress about cost overruns during renovations at the Fed’s Washington headquarters.
Powell dismissed the allegations as “pretexts” for a political hit job.
“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,” Powell said Sunday. He argued the administration is trying to force lower rates through “political pressure or intimidation.”
A Simmering Feud
Tensions between the White House and the Fed have been building for months. President Trump has frequently criticized Powell—whom he first appointed during his first term—for keeping interest rates too high. During a July 24 tour of the Fed’s headquarters, Trump confronted Powell with documents alleging the renovation costs had ballooned to $3.1 billion.
Powell, who appeared stunned at the time, later clarified that the figure included a separate building project completed years prior.
Despite the investigation, Powell noted he plans to finish his term as Chair. He remains eligible to serve as a Fed governor through January 2028.
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