U.S. Sen. Thom Tillis slammed the Department of Justice for lacking independence as it investigates the Federal Reserve. The North Carolina Republican said he will put a hold on all nominees to the Fed if an investigation continues.
The Fed released a video statement from Chair Jerome Powell saying the agency was subpoenaed over building project costs. Shortly after that release the Republican Senator launched an attack on President Donald Trump’s administration.
“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. It is now the independence and credibility of the Department of Justice that are in question,” Tillis posted on X.
“I will oppose the confirmation of any nominee for the Fed—including the upcoming Fed Chair vacancy—until this legal matter is fully resolved.”
Powell, who has been at odds with Trump over interest rates, has maintained attacks on the cost of renovations of the Fed’s headquarters were incorrect. He criticized the launch of a criminal investigation.
“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,” Powell said.
“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.”
Trump appointed Powell as Federal Reserve Chair during his first administration. The agency remains independent. Powell’s term as Chair will end in May, but he has two years left in his term as a Governor on the Fed.
Trump and Powell famously engaged in an argument at a press conference in July about whether the costs of the building renovations had exceeded $3 billion. Powell said that calculation can only be reached by including prior renovation costs completed nearly six years ago. Trump at the event said he would back off the questions about renovation costs if Powell lowered interest rates.
