Senate GOP Leader Questions DOJ's Independence and Credibility After Powell Probe

(Photo Credit: Annabelle Gordon for AP)
Senator Thom Tillis, a Republican from North Carolina, has raised concerns about the "independence and credibility" of the Justice Department under President Donald Trump. This comes after the ongoing criminal investigation into Federal Reserve Chair Jerome Powell, which Tillis claims highlights the administration's attempts to undermine the Fed's autonomy.

Tillis shared his thoughts on X, stating:

"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."

He added that he would oppose the confirmation of any nominee for the Fed, including the upcoming chair vacancy, until the legal matter is fully resolved.

This statement followed a report by The New York Times, which revealed that Powell was under criminal investigation over the multi-year renovation of the Fed building. Shortly before the report, Powell released a two-minute video addressing the probe. In it, he claimed the investigation stemmed from his refusal to lower interest rates, not the renovation. He described it as a "consequence" of not complying with the president’s demands.

Powell also mentioned that the DOJ had served the Federal Reserve with grand jury subpoenas on Friday, related to his testimony to the Senate Banking Committee last year on the renovation project.

President Trump has frequently criticized Powell for not cutting interest rates quickly enough, even giving him the nickname "Too Late." The New York Times reported that the investigation was led by Jeanine Pirro and involved an analysis of Powell’s "public statements and an examination of spending records."

In his video, Powell emphasized that the criminal probe had nothing to do with the Fed renovation. He stated:

"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."

He continued:

"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."

Powell’s comments highlighted the broader issue of whether the Fed can continue to set interest rates based on evidence and economic conditions, or if monetary policy will instead be influenced by political pressure or intimidation.

The news about the investigation came after Trump told reporters in late December that he was considering suing Powell for "gross incompetence." He claimed the cost of renovating the Fed building had spiraled out of control, reaching over $4 billion—$1.5 billion more than initially projected. Trump blamed the Democrats for the high costs, calling it "the highest price of construction per square foot in the history of the world."

He added that the project was "Powell’s baby," and that it was only right to consider legal action.

Following the announcement, the three major stock indices—the S&P 500, Nasdaq, and Dow Jones—each fell between 0.33% and 0.67% in overnight futures.