A prominent Republican senator has launched a fierce defence of the Federal Reserve's independence, condemning an unprecedented criminal investigation into its chair, Jerome Powell. The probe comes as former President Donald Trump renewed his attacks, labelling the central banker "not very good."
Senator Vows to Block Fed Nominees Over 'Unprecedented' Probe
North Carolina Senator Thom Tillis issued a blistering statement on Sunday, warning that the Justice Department's investigation into Powell represents a grave threat to the autonomy of both institutions. Tillis, a member of the Senate Banking Committee, vowed to block any future nominees for the Federal Reserve – including the upcoming vacancy for Chair – until the legal matter is fully 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 social media platform X. "It is now the independence and credibility of the Department of Justice that are in question."
His rebuke coincided with Trump distancing himself from the investigation while launching fresh criticism. "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 over cost overruns in a major renovation of the Fed's Washington headquarters.
Investigation Centres on Fed Headquarters Renovation Costs
The criminal probe, approved in November by US Attorney Jeanine Pirro, a longtime Trump ally, focuses on whether Powell misrepresented the scope and cost of the renovation during his Senate testimony in June. The facelift of the Fed's 88-year-old headquarters and a neighbouring building has seen costs surge by roughly $600 million from an original $1.9 billion estimate.
Security upgrades, including blast-resistant windows and structural reinforcements, are cited as major drivers of the increase. In July, Trump made an unusual visit to the construction site, where he and Powell publicly sparred over the price tag.
On Sunday, Powell confirmed the Fed had received grand jury subpoenas, calling the move part of an extraordinary pressure campaign. In a defiant statement, he said the subpoenas threatened a criminal indictment related to his June testimony. "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 asserted.
Political Fallout and Bipartisan Concern
Tillis's willingness to confront the White House is notable, reflecting his unusual political position. The Republican lawmaker has announced he is retiring later this year, freeing him from electoral pressure. Just last week, he took to the Senate floor to vent frustration, declaring he was "sick of stupid" and criticising White House advisers over remarks about Greenland.
The controversy has sparked bipartisan outrage. Democratic Senator Elizabeth Warren accused Trump of attempting "to complete his corrupt takeover" of the Fed by pushing Powell out to install a compliant "sock puppet."
Powell's term as Fed chair expires in May. Trump told media last month he would judge Powell's successor on their willingness to cut interest rates immediately. He has repeatedly floated removing Powell but has instead seized on the renovation costs.
Powell has repeatedly defended the renovation as necessary to remove asbestos and lead, modernise crumbling infrastructure, and ensure compliance with accessibility laws. Following his June testimony, the Fed published detailed explanations, photographs, and a virtual tour to back his claims, attributing overruns to inflation, labour costs, and unexpected contamination.
Nevertheless, the legal threat has plunged the world's most powerful central bank into turmoil, intensifying fears that its long-guarded independence is under direct assault from political forces.
