Senator Tillis Backs Trump’s Fed Nominee After DOJ Drops Powell Investigation

Sen. Thom Tillis (R-N.C.) announced on Sunday that he would confirm Donald Trump’s nominee for the new Federal Reserve chair after the Department of Justice provided assurances that it would drop its criminal investigation into current Fed Chair Jerome Powell.

“The U.S. Attorney’s Office criminal investigation into Chair Powell was a serious threat to the Fed’s independence,” Tillis wrote in a statement posted on X on Sunday morning. “I take the Department of Justice at its word: the investigation is closed.”

DOJ’s Decision to Drop Investigation

The dispute began when the Justice Department opened a criminal probe into Chair Jerome Powell over the costs associated with renovations to the Federal Reserve’s Washington headquarters. However, on Friday, Jeanine Pirro, the U.S. Attorney for the District of Columbia, posted on X that her office would close the investigation while the Federal Reserve’s Inspector General reviews the project’s costs.

“Note well, however, that I will not hesitate to restart a criminal investigation should the facts warrant doing so,” Pirro wrote in her statement.

Trump Questions the DOJ’s Decision

While Tillis may view Pirro’s announcement as a resolution, President Trump cast doubt on the DOJ’s decision. On Saturday, Trump suggested that the investigation was not truly closed.

“It’s not dropped. They’re looking into the whole thing,” Trump said. “How can a building that I could have done for $25 million cost $4 billion?”

During a Q&A session, Trump was asked whether he agreed with Pirro’s decision to drop the investigation into Powell. His response echoed his skepticism:

Q: “Do you agree with the decision by Jeanine Pirro to drop the investigation into Jerome Powell?”
Trump: “It’s not dropped. They’re looking into the whole thing.”

Pressure on Trump to Boost the Economy

Pressure has intensified on Trump to address the economic affordability crisis by lowering interest rates. His new Fed chair nominee, Kevin Warsh, has aligned with this push. However, Powell, whom Trump nominated to lead the Fed in 2017, has maintained steady interest rates and emphasized the central bank’s independence from the White House.

When news of the Justice Department’s investigation broke in January, many lawmakers argued that the move was part of Trump’s broader effort to undermine the Fed’s independence.

“The Trump administration was actively pushing to end the independence of the Federal Reserve,” Tillis stated. “It is now the independence and credibility of the Department of Justice that are in question.” He vowed to oppose the confirmation of any new Fed chair nominee until the matter was “fully resolved.”

Tillis’ Shift in Stance

During Kevin Warsh’s confirmation hearing last week, Tillis reiterated his concerns, saying that while Warsh possessed “extraordinary credentials,” he would not support his confirmation unless the Justice Department dropped its investigation into Powell. The DOJ’s decision to close the case has now led Tillis to reverse his position.