Republican Sen. Thom Tillis vows to block Trump’s Fed nominees following Powell probe
President Donald Trump will face a significant obstacle from within his own party as he seeks to replace Federal Reserve Chairman Jerome Powell.
Sen. Thom Tillis, R-N.C., said Sunday he would block Trump’s central bank appointees, including the new president, in light of weekend revelations that the Justice Department was investigating Powell on potential perjury charges.
“If there was any doubt left about whether advisors within the Trump Administration were actively pushing to end the independence of the Federal Reserve, there should be no doubt now. What is at stake now is the independence and credibility of the Department of Justice,” Tillis said. he said. in a statement.
“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 added.
That position greatly complicates the path to replacing Powell, whose term as chairman ends in May. The banking committee, of which Tillis is a member, has 13 Republicans and 11 Democrats, so even a single defection would lead to deadlock.
Tillis generally supports Trump but has occasionally fallen out with the president. For example, he was one of two GOP senators to vote against a “big, beautiful bill” spending package last year. Tillis will retire from the Senate when his term ends.
Powell’s position isn’t the only thing at stake.
Stephen Miran’s term as governor ends in January, and discussions are ongoing about potential retirements, particularly those of Vice President Philip Jefferson.
But the situation is overshadowed by news that the office of U.S. Attorney Jeanine Pirro, a Trump confidant and former Fox News host, is investigating Powell for perjury. Powell on Sunday. published a statement Acknowledging the investigation and claiming it was an excuse to give Trump power over the Fed.
“No one, especially the chairman of the Federal Reserve, is above the law, but this unprecedented action must be seen in the broader context of the administration’s threats and ongoing pressure,” Powell said.
Tillis isn’t the only banking panel member to criticize Trump over his move.
Sen. Elizabeth Warren, D-Mass., who once called Powell a “dangerous man” and opposed his reappointment, accused Trump of wanting a “sock puppet” to lead the Fed and do his bidding by lowering interest rates.
“Trump is abusing Justice Department officials like wannabe dictators so the Fed can serve his own interests along with his billionaire friends. This Committee and the Senate should not move forward with any of Trump’s nominees for the Fed, including the Fed Chair,” Warren said. he said. in a statement.
Powell’s term as president will end in May, but he can serve as governor until 2028. He has not yet stated whether he will do this or not.
The White House is conducting an extensive search for the new president and the number of candidates has been narrowed down to five. Trump stated that he will announce his candidate this month.
CNBC has reached out to the White House and Department of Justice for comment.
