Senator Thom Tillis (R-NC) pledged Sunday to block the confirmation of any future Federal Reserve nominees, including the next Fed Chair, escalating a high-stakes showdown over the Donald Trump administration’s legal threats against the central bank.
Legislative Blockade
In a statement released on X, Senator Tillis drew a hard line against what he described as an active push by administration advisers “to end the independence of the Federal Reserve.”
Tillis announced he would “oppose the confirmation of any nominee for the Fed—including the upcoming Fed Chair vacancy—until this legal matter is fully resolved.” The senator’s ultimatum follows the Department of Justice serving grand jury subpoenas to the Federal Reserve on Friday.
The subpoenas threaten a criminal indictment related to Chair Jerome Powell‘s testimony last summer regarding a multi-year renovation project of the Fed’s historic office buildings. Tillis argued that these actions have placed the “independence and credibility of the Department of Justice” in question.
Powell Calls Charges ‘Pretexts’
Federal Reserve Chair Powell pushed back aggressively in a video statement released Sunday evening. While acknowledging that “no one… is above the law,” Powell characterized the threat of indictment as “unprecedented action” that must be viewed in the context of “ongoing pressure” from the White House.
Powell dismissed the focus on his previous testimony and building renovations as mere “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 said.
Battle For Independence
The confrontation marks a critical juncture for U.S. monetary policy. Powell warned that the conflict is fundamentally about whether the Fed will operate based on “evidence and economic conditions” or succumb to “political pressure or intimidation.”
Asserting his intent to remain in office, Powell stated he would continue to serve with “integrity and a commitment to serving the American people” despite the mounting threats.
With Tillis now leveraging the Senate’s confirmation power to defend the central bank, the administration faces a significant legislative hurdle in its efforts to reshape the Fed’s leadership.
No Rate Cuts In January
The CME Group’s FedWatch tool‘s projections show markets pricing a 95% likelihood of the Federal Reserve leaving the current interest rates unchanged in January.
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, closed higher on Friday. The SPY was up 0.66% at $694.07, while the QQQ advanced 1.00% to $626.70, according to Benzinga Pro data.
The futures of the S&P 500, Nasdaq 100, and Dow Jones indices were trading lower on Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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