Sen. Thom Tillis, a Republican from North Carolina, said the criminal investigation into Fed Chair Jerome Powell has raised questions about the “independence and credibility” of the Justice Department under President Donald Trump. This comes after Trump repeatedly criticized Powell’s leadership.
According to Mediaite, Tillis posted on X that there should be no doubt now that advisers in the Trump administration are trying to end the Federal Reserve’s independence. He said the Justice Department’s independence and credibility are now in question.
“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, he wrote. I will oppose the confirmation of any nominee for the Fed – including the upcoming Fed Chair vacancy – until this legal matter is fully resolved.”
The investigation threatens Federal Reserve independence
Tillis made these comments after news broke that Powell is facing a criminal investigation over the multi-year renovation of the Fed building. Powell released a two-minute video. He said the probe was because he refused to lower interest rates, not because of the renovation. Powell called it a “consequence” of not following the president’s demands.
Powell also said the DOJ gave the Federal Reserve grand jury subpoenas on Friday. These were about his testimony to the Senate Banking Committee last year regarding the renovation project. The Trump administration has faced growing scrutiny over how officials handle controversial incidents involving federal agencies.
Trump has regularly criticized Powell for not cutting rates fast enough. He gave Powell the nickname “Too Late.” The investigation was led by Jeanine Pirro. It included looking at Powell’s public statements and spending records. Powell said in his video that the criminal probe had nothing to do with the Fed renovation.
He said, “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 also said this is about whether the Fed can continue to set interest rates based on evidence and economic conditions, or whether political pressure and intimidation will control monetary policy.
This news comes after Trump told reporters in late December he was thinking about suing Powell for “gross incompetence.” The president said the Fed building renovation cost got out of control and is now over $4 billion, which is about $1.5 billion more than projected. Meanwhile, Trump’s freeze on billions in aid has sparked legal battles in multiple states.
Published: Jan 12, 2026 01:15 pm