A Republican senator has voiced strong opposition to what he calls an ‘unprecedented’ criminal investigation into Federal Reserve Chair Jerome Powell, as President Donald Trump took aim at the central banker, labeling him as ‘not very good.’
On Sunday, Powell confirmed that the Federal Reserve has been issued a subpoena by the Justice Department. This comes as the institution faces scrutiny over cost overruns associated with a major renovation project at its Washington headquarters.
Senator Thom Tillis from North Carolina has expressed concern that this investigation could jeopardize the autonomy of both the Federal Reserve and the Justice Department.
A member of the Senate Banking Committee, which plays a crucial role in the approval of Federal Reserve nominees, Tillis has pledged to obstruct any forthcoming nominations until the current issue is resolved.
In a harsh statement on social media platform X, Tillis argued, ‘If there were any lingering doubts about whether Trump Administration advisers are actively working to undermine the independence of the Federal Reserve, this should erase them.’ He further added, ‘It is now the independence and credibility of the Department of Justice that are in question.’
‘It is now the independence and credibility of the Department of Justice that are in question.’
The rebuke came as Trump distanced himself from the investigation while launching fresh attacks on Powell.
‘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,’ Trump said about Powell.
North Carolina Republican, Senator Thom Tillis, is breaking with Trump as the Fed chair faces an unprecedented criminal probe
Tillis warned the investigation risks destroying the Federal Reserve’s independence
Trump dismissed the investigation while calling Federal Reserve Chair Jerome Powell ‘not very good’ at his job
Trump has repeatedly floated removing Powell outright, though he has stopped short of doing so, instead seizing on ballooning costs tied to a massive renovation of the Fed’s Washington headquarters.
Powell’s term as Fed chair expires in May, and Trump told Politico last month that he would judge Powell’s successor on whether they were willing to cut interest rates immediately.
Powell called the investigation part of an extraordinary pressure campaign tied to the administration’s frustration with Fed policy.
In a defiant statement, Powell said the central bank received grand jury subpoenas on Friday ‘threatening a criminal indictment’ related to his Senate testimony in June about the renovation project.
‘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 unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.’
Trump has openly weighed removing Powell as the Fed chair as his term nears its end
The investigation centers on cost overruns tied to the Fed’s Washington headquarters renovation. Trump and Powell are pictured looking over a document of cost figures during a visit to the Federal Reserve last July
The facelift of the Fed’s 88-year-old headquarters and a neighboring building has surged by roughly $600 million from its original $1.9 billion estimate, with security upgrades – such as blast-resistant windows and structural reinforcements – driving much of the increase.
In July, Trump made an unusual visit to the construction site, where he and Powell, both wearing hard hats, publicly sparred over the price tag.
Senator Tillis’ willingness to confront the White House reflects his unusual political position among Republican senators.
The Republican lawmaker has announced he is retiring later this year, freeing him from electoral pressure after he crossed Trump publicly last summer.
Just last week, Tillis took to the Senate floor to vent his frustration with the administration, declaring he was ‘sick of stupid.’
In that speech, Tillis singled out White House deputy chief of policy Stephen Miller and sharply criticized remarks suggesting Greenland should be brought under U.S. control.
‘I want good advice for this president, because I want this president to have a good legacy,’ Tillis said.
‘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.’
Tillis vowed to block all future Fed nominees until the probe into Jerome Powell is resolved
Federal prosecutors have opened a criminal investigation into Jerome Powell, the powerful chair of the Federal Reserve. Powell responded on Sunday night with a defiant message
The inquiry was approved in November by Jeanine Pirro, a longtime Trump ally appointed to lead the US Attorney’s Office for the District of Columbia, last year
Powell dismissed claims that the probe is about misleading Congress or misuse of funds, calling those assertions ‘pretexts.’
The controversy surrounding Powell has sparked bipartisan outrage.
Sen. Elizabeth Warren, a Democrat, accused Trump of attempting ‘to complete his corrupt takeover’ of the Federal Reserve by pushing Powell out and installing what she called a compliant ‘sock puppet’ in his place.
The investigation, approved in November by US Attorney Jeanine Pirro, focuses on whether Powell misrepresented the scope and cost of the renovation during his testimony.
Prosecutors are examining his public statements, internal records, and spending tied to the overhaul of the Fed’s historic buildings near the National Mall – projects that date back to the 1930s and had not been comprehensively renovated in nearly a century.
Powell has repeatedly defended the project, saying it is necessary to remove asbestos and lead, modernize crumbling infrastructure, and bring the buildings into compliance with accessibility laws.
When questioned by lawmakers last June about features such as private dining rooms, marble upgrades, and special elevators, Powell flatly denied they were part of the current plan.
Trump has conitually blasted Powell about the cost of a massive renovation of the Federal Reserve’s building in DC
A view shows the Marriner S. Eccles Federal Reserve Board Building as a massive renovation continues on the building and the 1951 Constitution Avenue Building
The Washington Monument is visible beyond the 1951 Constitution Avenue Building as a massive renovation continues on the building and the Marriner S. Eccles Federal Reserve Board Building
‘There’s no V.I.P. dining room; there’s no new marble,’ Powell told Congress. ‘We took down the old marble, we’re putting it back up.’
After that testimony, the Fed published detailed explanations, photographs, and a virtual tour backing up Powell’s claims, while attributing cost overruns to inflation, labor costs, and unexpected contamination issues.
Still, the legal threat has plunged the world’s most powerful central bank into turmoil and intensified fears that its long-guarded independence is under direct assault.
