President Donald Trump will face an important obstacle — from within his own party — as he seeks to replace Federal Reserve Chair Jerome Powell.
Sen. Thom Tillis, R-N.C., said Sunday he will block any Trump appointees to the central bank, including for the new chair, in light of revelations over the weekend that the Justice Department is investigating Powell for potential perjury charges.
“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,” Tillis said in a statement.
“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 added.
That position substantially complicates the road to replacing Powell, whose term as chair expires in May. The banking committee, of which Tillis is a member, has 13 Republicans and 11 Democrats, so even one defection sets up a stalemate.
Tillis usually supports Trump but occasionally has broken with the president. For instance, he was one of just two GOP senators to vote against the “one big beautiful bill” spending package last year. Tillis is retiring from the Senate when his term ends.
Powell’s position isn’t the only one at stake.
Stephen Miran’s term as governor ends in January, and there has been chatter about potential retirements, particularly Vice Chair Philip Jefferson.
However, news that the office of U.S. Attorney Jeanine Pirro, a Trump confidant and former Fox News host, is investigating Powell for perjury clouds the situation. Powell on Sunday released a statement acknowledging the investigation and alleging it is a pretext for giving Trump power over the Fed.
“No one, certainly not the chair of the Federal Reserve, is above the law, but this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure,” Powell said.
Tillis isn’t the only banking panel member to criticize Trump over the move.
Sen. Elizabeth Warren, D-Mass., who once called Powell “a dangerous man” and opposed his reappointment, accused Trump of wanting a “sock puppet” to lead the Fed and do his bidding by lowering interest rates.
“Trump is abusing the authorities of the Department of Justice like a wannabe dictator so the Fed serves his interests, along with his billionaire friends. This Committee and the Senate should not move forward with any Trump nominee for the Fed, including Fed Chair,” Warren said in a statement.
While Powell’s term as chair ends in May, he can stay on as governor until 2028. He has not indicated yet whether he will do so.
The White House has been conducting an extensive search for the new chair, with the candidate field whittled down to five. Trump has indicated he will put forth a nominee this month.
CNBC has reached out to the White House and DOJ for comment.
