Things are getting messy between the White House and the Federal Reserve. Senator Thom Tillis (R-NC) just promised to block every future Fed nominee—including whoever gets tapped for the next Chair position—until the Justice Department backs off its legal threats against the central bank.
Senator Plants His Flag
Tillis laid it all out in a statement on X this Sunday, accusing administration advisers of actively working "to end the independence of the Federal Reserve." He's drawing a line in the sand: no confirmations until "this legal matter is fully resolved."
The trigger? The DOJ served grand jury subpoenas to the Federal Reserve on Friday. The potential criminal charges relate to testimony Chair Jerome Powell gave last summer about—wait for it—a multi-year renovation project of the Fed's historic office buildings. Yes, building renovations. Tillis argued these moves have put the "independence and credibility of the Department of Justice" on the line.
Powell Fires Back
Powell didn't wait long to respond. In a video statement released Sunday evening, the Fed Chair acknowledged that "no one… is above the law," but he wasn't about to roll over. He called the threat of indictment "unprecedented action" that needs to be understood in the context of "ongoing pressure" from the White House.
Powell was blunt about what he thinks is really happening here. He dismissed the focus on his testimony and building renovations as mere "pretexts."
"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.