Republican senator vows to block all Fed nominations after DoJ investigates Powell | US politics
A Republican senator has vowed to block all Federal Reserve nominations after the justice department launched a criminal investigation into Fed chair Jerome Powell, raising tensions over the central bank’s independence.
Thom Tillis of North Carolina, a member of the banking committee that oversees Fed appointments and who will retire at the end of his term later this year, said Sunday that he would oppose any nominee for the Fed, including the upcoming chairman, “until this legal matter is fully resolved.”
“If there was any doubt left about whether advisors within the Trump Administration were actively pushing to end the Fed’s independence, there should be no doubt anymore,” Tillis said. wrote to x.
“What is at stake now is the independence and credibility of the Ministry of Justice.”
The response comes just days after the justice department subpoenaed the Federal Reserve on Friday as part of an investigation based on Powell’s testimony to the Senate in June about the rising costs of renovating the Fed headquarters. Powell confirmed the subpoena on Sunday and said the investigation was part of a pressure campaign tied to the administration’s frustration with the Fed’s interest rate policy.
“No one is above the law, least of all the Fed chairman,” Powell said in a video released by the Federal Reserve. Federal Reserve at X. “But this unprecedented action must be seen in the broader context of the administration’s threats and ongoing pressure.”
Since returning to office last January, Trump has waged a year-long campaign urging Powell to cut interest rates and has repeatedly suggested he could oust him as Fed chair entirely, but has stopped short of doing so. Powell’s term ends in May, and Trump told Politico last month that he would evaluate Powell’s successor based on whether they are willing to cut interest rates immediately.
Donald Trump told NBC News He said Sunday he had no knowledge of the investigation but criticized 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 said.
Trump also denied that the subpoenas had anything to do with interest rates. “No. I’m not even thinking about doing it that way. The thing that should keep him under pressure is if rates are too high. That’s the only pressure he has,” he said, adding that he believed the public was putting pressure on Powell.
The Federal Reserve operates as an independent entity within the government to protect monetary policy from political interference. Central bank independence is viewed by economists as essential to maintaining economic stability and reliability.
“The threat of criminal charges is a result of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the President’s preferences,” Powell wrote in the statement.
