President Donald Trump encountered a swift bipartisan backlash Sunday night after Federal Reserve Chair Jerome Powell accused the Justice Department of initiating a grand jury investigation as a pretext to pressure and intimidate the central bank. A key Republican on the Senate Banking Committee, Senator Thom Tillis, who is not seeking re-election, vowed to oppose any of Trump's nominees to the Fed until the matter is resolved. "If there was any doubt before about whether there are advisers within the Trump administration actively pushing to end the Fed's independence, there should be none now," Tillis said in a statement. "What is in question now is the independence and credibility of the Justice Department itself." "Until this legal matter is fully resolved, I will oppose the confirmation of any nominee to the Federal Reserve—including the upcoming vacancy for Fed Chair," said Tillis, who also sits on the Judiciary Committee, which oversees the Justice Department.
For months, Trump has made clear his desire for the Fed to rapidly and significantly cut interest rates. Officials across the administration have targeted current Fed governors, including Biden-appointee Lisa Cook, as well as current Chair Powell. In written and video statements released Sunday evening, Powell said the action was related to his June congressional testimony concerning the ongoing renovation of the Fed's headquarters building. However, he noted that it should be viewed "in the broader context of a continuing pattern of threats and pressure from the administration." Powell added, "This is about whether the Fed can continue to set interest rates based on evidence and economic conditions—or whether monetary policy will be forced to bend to political pressure or intimidation."
During an interview on Sunday, Trump denied any knowledge of the Justice Department's investigation into the Fed. Tillis's threat could become a potential obstacle in Trump's path as he attempts to pressure the Fed into compliance. Tillis's opposition would likely deadlock a vote on any Fed nominee in the Senate Banking Committee, where the partisan split is 13 to 11. Under current Senate rules, 60 votes are required to bring a contentious nomination out of committee for a full floor vote.
Democrats were quick to issue statements of condemnation. "Trump wants to both nominate a new Fed Chair and completely remove Powell from the Board to complete his corrupt takeover of our central bank," wrote Senator Elizabeth Warren, the top Democrat on the Banking Committee. "He is abusing the law like a wannabe dictator, just to make the Fed serve him and his billionaire friends. The Senate must not allow any Trump nominee for the Fed to be confirmed." Senate Democratic Leader Chuck Schumer said undermining the Fed's independence threatens economic stability. "Anyone who remains independent and doesn't kowtow to Trump will be investigated," he stated.
Florida Republican Representative Anna Paulina Luna, who had previously sought an investigation into Powell's congressional testimony about the Fed building renovations, welcomed the news on social media platform X. "Unelected bureaucrats are not above accountability," she wrote. Tillis's rapid counterattack follows a series of Republican rebellions against Trump in both the House and Senate, including last week's House vote to extend Biden-era health insurance subsidies and a Senate vote to advance legislation ending military operations in Venezuela.
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