Tillis slams probe into Fed Chair Jerome Powell, vows to block Trump replacement
AI-generated summary reviewed by our newsroom.
- Tillis vows to block Trump’s next Fed chair nominee until DOJ probe concludes.
- DOJ subpoenaed the Fed and raised possible criminal charges over Powell testimony.
- Former Fed chairs and senators warn the probe threatens central bank independence.
Sen. Thom Tillis has labeled the new Department of Justice probe into Federal Reserve Chair Jerome Powell an attack on central bank independence and threatened to block President Donald Trump’s next Fed chair nominee until the investigation is concluded.
“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, a Republican, wrote in a statement Sunday. “It is now the independence and credibility of the Department of Justice that are in question.”
On Sunday, Powell confirmed the Department of Justice had subpoenaed the Federal Reserve and raised the possibility of a criminal charge over his testimony in June to the Senate Banking Committee regarding renovations to Federal Reserve buildings in Washington. Projected renovation costs for this multi-year project have risen from $1.9 billion to $2.5 billion. In an online FAQ, the Federal Reserve named fluctuations in the price of materials, changes to initial building designs, and “unforeseen conditions” like higher-than-expected asbestos as reasons for this increase.
Trump, during his second term, has repeatedly criticized Powell’s performance and argued the central bank should more aggressively cut interest rates. The Federal Reserve lowered interest rates three times in 2025.
“I have deep respect for the rule of law and for accountability in our democracy,” Powell wrote in his statement. “No one — certainly not the chair of the Federal Reserve — is above the law. But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.”
Trump nominated Powell to lead the Federal Reserve in 2017, and President Joe Biden reappointed him four years later. Powell’s term as chair ends in May, but he is scheduled to continue as a board governor until early 2028.
As a member of the Senate Banking Committee, Tillis is positioned to impede Trump’s selection to replace Powell. The committee recommends Fed chair nominations to the broader chamber and currently has 13 Republicans and 11 Democrats.
Trump has denied involvement in the Department of Justice’s Powell investigation, telling NBC News on Sunday, “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.”
Tillis leads Republican backlash to Powell investigation
Tillis, a two-term senator, announced in June he won’t seek reelection in 2026. Since then, he has more publicly voiced opposition to Trump administration policies, including criticizing White House adviser Stephen Miller. Tillis voted against Trump’s signature legislation, the One Big Beautiful Bill Act, over concerns about health-insurance coverage in North Carolina.
He is not the only Republican senator to condemn the Powell probe; on Monday, Sen. Lisa Murkowski of Alaska wrote on X that “After speaking with Chair Powell this morning, it’s clear the administration’s investigation is nothing more than an attempt at coercion.”
“My colleague, Senator Tillis, is right in blocking any Federal Reserve nominees until this is resolved,” read the end of Murkowski’s statement.
Speaking at an economic forecast forum in Durham on Monday, former Rep. Patrick McHenry, a North Carolina Republican, offered a blunt assessment of the investigation. “What Trump is doing now, I think is deeply offensive to our system of checks and balances,” McHenry, who left office in 2025, said. “It is deeply offensive to Fed independence, and is a wrong thing to do. It is not right for the economy.”
McHenry previously served as chair of the House Financial Services Committee.
The Federal Reserve was created in 1913 to manage the country’s monetary policies while being more removed from short-term political prioritization. A joint statement Monday signed by former economic leaders, including the three Fed chairs preceding Powell, raised alarms at the new investigation.
“The Federal Reserve’s independence and the public’s perception of that independence are critical for economic performance, including achieving the goals Congress has set for the Federal Reserve of stable prices, maximum employment, and moderate long-term interest rates,” read the statement signed by Alan Greenspan, Ben Bernanke and Janet Yellen. “The reported criminal inquiry into Federal Reserve Chair Jay Powell is an unprecedented attempt to use prosecutorial attacks to undermine that independence.”
Ahead of the Monday’s economic forecast event, organized by the North Carolina Bankers Association and the North Carolina Chamber, Federal Reserve Bank of Richmond President Tom Barkin declined to comment on the federal probe or Powell’s statement. But the regional Fed leader did share his opinion of Powell as the central bank leader.
“I’ve worked with Jay for the last eight years, and I think he’s a very strong, committed public servant who’s done a very good job,” Barkin said in an interview with The News & Observer.
This story was originally published January 12, 2026 at 1:08 PM.
