• Senator Thom Tillis vows to oppose all Federal Reserve nominations until investigation resolved
• DOJ served Fed with grand jury subpoenas over Powell’s congressional testimony about headquarters renovation
• Banking Committee split 13-11 means single GOP defection could deadlock confirmation votes

WASHINGTON, DC (TDR) — A key Republican senator announced he will block confirmation of any Federal Reserve nominees until the Department of Justice concludes its criminal investigation of Fed Chair Jerome Powell, creating a potential roadblock for President Donald Trump as he prepares to name Powell’s successor.

Senator Thom Tillis of North Carolina, a senior member of the Senate Banking Committee, declared Sunday that he questions the credibility of the Justice Department’s probe into Powell, which stems from the Fed chair’s June 2025 testimony about a $2.5 billion headquarters renovation project.

“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 said in a statement. “It is now the independence and credibility of the Department of Justice that are in question.”

Powell Accuses Administration of Intimidation

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The North Carolina Republican’s announcement came hours after Powell released a rare video statement revealing that federal prosecutors served the Federal Reserve with grand jury subpoenas on Friday, threatening criminal indictment over his congressional testimony.

Powell directly linked the investigation to the administration’s demands for lower interest rates, calling the probe’s stated justification a pretext for political pressure.

“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.”

The Fed chair warned that the investigation threatens the central bank’s ability to set monetary policy free from political interference. He emphasized that he served under four presidents from both parties and has never faced such pressure.

“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.”

Tillis’ Opposition Creates Confirmation Hurdle

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Tillis’ decision to oppose Trump’s Fed nominees carries significant weight. The Banking Committee composition is split 13-11 between majority Republicans and minority Democrats, meaning a single GOP defection could result in a deadlocked vote and prevent nominees from advancing to the full Senate floor.

“I will oppose the confirmation of any nominee for the Fed—including the upcoming Fed Chair vacancy—until this legal matter is fully resolved,” Tillis stated.

The senator, who is not seeking reelection, has previously defended Federal Reserve independence and warned against political interference with the central bank’s decision-making process.

Trump Denies Knowledge, Democrats Condemn Probe

Trump told NBC News on Sunday that he had no knowledge of the Justice Department investigation, though he 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.

The Justice Department declined to comment on the investigation but stated that Attorney General aims to “prioritize investigating any abuse of taxpayer dollars,” according to a statement provided to CNN.

Senate Minority Leader Chuck Schumer, a New York Democrat, accused Trump of “bullying” the Fed and suggested the president is lashing out over public disapproval of his economic policies.

“This is the kind of bullying that we’ve all come to expect from Donald Trump and his cronies. Anyone who is independent and doesn’t just fall in line behind Trump gets investigated.”

Senator Elizabeth Warren, the Massachusetts Democrat who serves as the Banking Committee’s ranking member, echoed Tillis’ opposition to confirming Trump’s nominees.

“Trump is abusing the authorities of the Department of Justice like a wannabe dictator so the Fed serves his interests, along with his billionaire friends,” Warren said in a statement. “This Committee and the Senate should not move forward with any Trump nominee for the Fed, including Fed Chair.”

Renovation Project at Center of Investigation

The criminal probe focuses on Powell’s testimony before Congress about cost overruns on the Federal Reserve headquarters renovation, which has run approximately $700 million over budget. Trump has repeatedly criticized the project as wasteful and potentially fraudulent.

Powell told Congress that claims about a lavish renovation were untrue and that overruns resulted from unexpected material costs and building issues. The Fed chair maintains that officials made every effort to keep lawmakers informed about the project through testimony and public disclosures.

The president joined Powell on a contentious tour of the renovation site in July 2025, where Powell publicly corrected Trump about project costs in front of reporters, highlighting tension between the two men.

Fed Chair Succession Complicated

Powell’s term as Fed chair expires in May 2026, though he could remain on the Board of Governors until January 2028. He has not indicated whether he will stay on as a governor after stepping down as chair.

Trump has indicated he plans to announce his nominee for Fed chair in early 2026. National Economic Council Director Kevin Hassett and former Fed Governor Kevin Warsh are considered the leading contenders, with Trump referring to them as “the two Kevins.”

Both potential nominees have signaled support for cutting interest rates more aggressively than the current Fed leadership, aligning with Trump’s repeated demands for lower rates to stimulate economic growth.

Will the Justice Department investigation and bipartisan Senate opposition force Trump to reconsider his approach to Federal Reserve leadership?

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