Thom Tillis Threatens to Block Federal Reserve Appointments

North Carolina Republican Sen. Thom Tillis has announced plans to obstruct any future Federal Reserve appointments made by President Donald Trump, including positions for chair, in light of a criminal investigation by the Justice Department into Chairman Jerome Powell.

Tillis, who is a former congressman and currently serves on the Senate Banking Committee, holds a key position that can greatly influence which candidates are confirmed for the Fed. “If there was ever any doubt that advisers within the Trump administration were actively pushing to end the independence of the Federal Reserve, there should be no doubt now,” he mentioned in a statement following the revelation of the federal probe.

He further noted, “The independence and credibility of the Department of Justice are now being called into question.” With Republicans holding a narrow 13-11 majority on the committee, a vote against Trump’s nominee from Tillis could derail the confirmation process entirely, making it difficult for the president’s choice to advance. Although the party could explore alternative nomination routes, success would depend on the level of intra-Republican support.

Powell, who was initially appointed as Fed chair during Trump’s administration and reappointed by President Joe Biden, is set to resign from his chair position on May 15, though he could remain on the Fed’s board until 2028. Speculation is swirling around potential successors, with names like White House economic advisor Kevin Hassett and former Federal Reserve Board member Kevin Warsh being mentioned.

In a statement, Powell confirmed that the Justice Department’s investigation centers on his testimony to Congress regarding the Fed’s construction projects, hinting at possible criminal charges. Trump has previously criticized these projects for their reported budget overruns.

Powell argued that the investigation serves as a “pretext” for the administration to pressure the Fed into lowering interest rates and jeopardizing its autonomy. “This unprecedented action should be viewed in the broader context of the administration’s threats and continued pressure,” he said, adding that the issues at hand are not merely related to construction but part of a larger narrative.

During a recent NBC News interview, President Trump deflected questions about the investigation but criticized Powell’s effectiveness, saying, “He’s certainly not very good at the Fed, and he’s certainly not very good at building buildings.”

Tillis has been vocal in his criticisms, even speaking out against Trump’s One Big Beautiful Bill Act, which seeks to cut Medicaid spending significantly, warning it could leave many without health insurance. He’s also expressed concern over the administration’s vague threats regarding military action, specifically mentioning Greenland and Venezuela.

Furthermore, Tillis has placed a hold on future nominations for the Department of Homeland Security until Secretary Kristi Noem agrees to testify before the Senate Judiciary Committee. “That is unacceptable,” he remarked, emphasizing the need for accountability.