‘Unprecedented’: Influential GOP Sen. Issues Major Threat Amid Fed Chair Jerome Powell’s Criminal Probe
Sen. Thom Tillis (R-NC) issued a stark warning Sunday, vowing to block all future Federal Reserve nominees until a criminal investigation into Fed Chairman Jerome Powell is resolved.
The North Carolina lawmaker called the Justice Department probe “unprecedented” and raised alarms about threats to the independence of both institutions.
Powell revealed Sunday that the Federal Reserve received grand jury subpoenas on Friday related to testimony he gave Congress about cost overruns at the central bank’s Washington headquarters renovation project.
The Fed chairman characterized the investigation as part of a broader pressure campaign linked to the administration’s dissatisfaction with the central bank’s interest rate policies.
Tillis, who serves on the Senate Banking Committee responsible for vetting Fed nominations, did not mince words in his response to the probe.
“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 stated on social media.
The senator went further, questioning the credibility of the Justice Department itself over the matter.
President Trump addressed the investigation while simultaneously criticizing Powell’s performance, telling reporters he knew nothing about the probe but adding that Powell is “certainly not very good at the Fed, and he’s not very good at building buildings.”
Trump has previously suggested removing Powell from his position, though he has not taken that step, instead focusing attention on the ballooning expenses associated with the Fed headquarters renovation.
The chairman’s term concludes in May, and Trump indicated last month to Politico that he would evaluate Powell’s replacement based on their willingness to implement immediate interest rate cuts.
The renovation project at the 88-year-old Fed headquarters has experienced cost increases of approximately $600 million beyond the initial $1.9 billion projection.
Security enhancements including blast-resistant windows and structural reinforcements account for a significant portion of the additional expenses.
Trump made an uncommon appearance at the construction site in July, where he and Powell, both wearing hard hats, engaged in a public disagreement about the project’s price tag.
Powell firmly rejected suggestions that the criminal investigation concerns misleading Congress or mishandling funds, labeling such claims as “pretexts.”
“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 declared in his statement.
The subpoenas reportedly threaten criminal indictment related to Powell’s June Senate testimony about the renovation.
US Attorney Jeanine Pirro approved the investigation in November, with prosecutors examining whether Powell provided inaccurate information about the renovation’s scope and cost during his congressional testimony.
Investigators are reviewing his public statements, internal documentation, and expenditures connected to the overhaul of the historic buildings located near the National Mall.
Powell has consistently defended the renovation as essential for removing hazardous materials like asbestos and lead, updating deteriorating infrastructure, and ensuring compliance with accessibility regulations.
When lawmakers questioned him last June about specific features including private dining rooms, marble upgrades and special elevators, Powell categorically denied their inclusion in the current plans.
“There’s no V.I.P. dining room; there’s no new marble,” Powell testified before Congress, according to Daily Mail reporting.
“We took down the old marble, we’re putting it back up.”
Following that testimony, the Fed released comprehensive explanations, photographs and a virtual tour supporting Powell’s statements while attributing cost increases to inflation, labor expenses and unanticipated contamination problems.
Sen. Tillis occupies an unusual position among Republican senators, having announced his retirement later this year, which removes electoral pressures after he publicly opposed Trump last summer.
Last week, Tillis delivered a Senate floor speech expressing frustration with the administration, stating he was “sick of stupid.”
During that address, Tillis specifically criticized White House deputy chief of policy Stephen Miller and remarks about bringing Greenland under United States control.
“I want good advice for this president, because I want this president to have a good legacy,” Tillis stated.
“And this nonsense on what’s going on with Greenland is a distraction from the good work he’s doing, and the amateurs who said it was a good idea should lose their jobs.”
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