Senate Republican Says ‘Independence and Credibility’ of DOJ Is Now ‘in Question’ After Powell Probe

(Photo Credit: Annabelle Gordon for AP)

Sen. Thom Tillis (R-NC) said the criminal investigation into Fed Chair Jerome Powell has called the “independence and credibility” of the Justice Department under President Donald Trump into question following the president’s consistent criticism of Powell’s leadership.

Tillis posted the following on X on Sunday night:

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.

I will oppose the confirmation of any nominee for the Fed—including the upcoming Fed Chair vacancy—until this legal matter is fully resolved.

He made his remarks after The New York Times reported Powell was facing a criminal investigation over the multi-year renovation of the Fed building.

And shortly before the NYT report, Powell released a two-minute video where he said the probe was due to his unwillingness to lower interest rates, not the renovation. Powell described it as a “consequence” of not adhering to the president’s demands.

He also said the DOJ served the Federal Reserve with grand jury subpoenas on Friday over his testimony to the Senate Banking Committee last year on the renovation project.

Trump has routinely bashed Powell for not moving quickly enough in his view to cut rates and has branded him with the nickname “Too Late.”

The NYT reported the investigation was spearheaded by Jeanine Pirro and included an analysis of Powell’s “public statements and an examination of spending records.”

Powell said in his video that the criminal probe had nothing to do with the Fed renovation.

Here is the key part of what he said:

This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. It is not about Congress’s oversight role; the Fed through testimony and other public disclosures made every effort to keep Congress informed about the renovation project.

Those are 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.

This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation.

Powell’s announcement and the NYT report come after President Trump told reporters in late December he was considering suing Powell for “gross incompetence.”

The president said he was aiming to sue Powell because the cost of renovating the Fed building had gotten out of control. Trump said the cost was north of $4 billion now — about $1.5 billion more than projected.

“It’s going to end up costing more than $4 billion — $4 billion! It’s the highest price of construction,” Trump said. “Again, Democrats — highest price of construction per square foot in the history of the world. Gorgeous monuments are built for a much smaller price. So we’re thinking about bringing… what’s called [a] gross incompetence lawsuit.”

Trump said it was only right, considering the project was Powell’s “baby.”

The three major indices — the S&P 500, Nasdaq, and Dow Jones — were all down between 0.33% and 0.67% in overnight futures, after the Powell news emerged.