Tillis Calls DOJ Probe of Powell 'Reaching the Point of the Absurd,' Keeps Blocking Trump's Fed Pick

What Happened

Sen. Thom Tillis (R-N.C.) met with President Trump's Federal Reserve chair nominee Kevin Warsh on March 10 — and came away impressed but unmoved. The Senate Banking Committee member praised Warsh's credentials while reaffirming he will not vote to confirm him until the Department of Justice ends its criminal investigation of current Fed Chair Jerome Powell.

As Victoria Guida reported for Politico, Tillis described the DOJ probe of Jerome Powell as "reaching the point of the absurd" and said Warsh "possesses impeccable credentials and a clear vision for maintaining the Fed's independence while achieving its dual mandate." But he added bluntly: "I'm not going to try and help them out of a box canyon."

The standoff is significant because the Senate Banking Committee's narrow margins mean Tillis's refusal alone could prevent the Warsh nomination from advancing — creating a rare instance of a Republican senator blocking a Trump administration priority to defend the Federal Reserve's institutional independence.

Recap: How the Tillis DOJ Probe Standoff Got Here

The Investigation

The Department of Justice Powell probe began in January 2026, when U.S. Attorney for the District of Columbia Jeanine Pirro launched a criminal investigation into Powell over alleged cost overruns tied to the Federal Reserve's $2.5 billion headquarters renovation in Washington. The probe reportedly originated from a July 2025 congressional referral by Rep. Anna Paulina Luna (R-Fla.), who accused Powell of misleading Congress during Senate Banking Committee testimony about the renovations.

Powell responded with an unprecedented video statement on January 11, 2026, directly accusing the DOJ of using the investigation to pressure the Fed on interest rate policy:

"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. This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions — or whether instead monetary policy will be directed by political pressure or intimidation."

The investigation has since been reported to extend beyond Powell to other Fed governors, including Governor Cook.

Tillis's Position on the Thom Tillis Federal Reserve Standoff

Tillis has been consistent and firm. After meeting with Warsh, he told reporters he hopes "the DOJ moves quickly to conclude the investigation of Chairman Powell so that we can confirm Kevin Warsh to this critical role by May." Separately, he has stated that "nothing Warsh says will change my position" — making clear this is about the Tillis Powell DOJ investigation dispute, not the nominee himself.

Notably, Tillis is not up for reelection, giving him political latitude to defy the White House on this issue.

Fellow Republicans Break Ranks on the Investigation

Tillis is not alone in his skepticism. Senate Banking Committee Chairman Tim Scott has said he doesn't believe Powell committed a crime. Treasury Secretary Scott Bessent has suggested the Banking Committee itself, rather than the DOJ, should investigate the renovation cost overruns — offering an alternative resolution path.

When asked about the probe, President Trump told NBC News in January: "I don't know anything about it" — a notable distancing given that Pirro is his own appointee.

Hill & Administration Take

On the Hill

The Warsh confirmation is stalled. Trump formally nominated Warsh to chair the Fed in early March 2026, but the Tillis absurd DOJ investigation characterization has become the defining obstacle to moving forward.

Banking Committee Chairman Tim Scott appeared on CNBC's Squawk Box on March 11 and said he hopes the investigation "goes away" so the nomination can proceed, stating: "That proceeding going away allows for us to get the Fed fully functioning, back on target." Scott also offered a more critical take on Powell himself, saying "when he was before the committee he definitely was unprepared" — a reference to Powell's prior testimony on the renovation costs.

On the Democratic side, eleven members of the Senate Banking Committee sent a formal letter to Chairman Scott urging that the Warsh confirmation process should not proceed until the "baseless criminal investigations" into Powell and other Fed governors are concluded. Sen. Elizabeth Warren (D-Mass.) called Warsh "nothing more than Donald Trump's sock puppet at the Fed" in a statement opposing the nomination.

Sen. Kevin Cramer (R-N.D.) was also scheduled to meet with Warsh during the same week, as part of a broader outreach effort to Banking Committee members.

From the Administration

President Trump has maintained a sustained public campaign against Powell over interest rate policy, which CNN described as "a barrage of personal insults at Powell, evolving into threats to fire the Fed chair." Trump has argued that the federal funds rate is "too high," putting the U.S. at an economic disadvantage. But on the DOJ investigation specifically, Trump has distanced himself.

Powell's term expires in May 2026, which is why Tillis has set that month as his target for resolving the matter.

What the Media Is Reporting

Coverage of the Tillis DOJ probe standoff has been extensive and largely consistent in framing it as an unusual intra-party conflict. Max Rego at The Hill was the first to identify Jeanine Pirro by name as the U.S. Attorney who launched the probe and reported Tillis's specific May deadline for confirmation. CNBC's coverage of Tim Scott's March 11 appearance added the Banking Committee chairman's perspective that the probe needs to "go away" and his remark that Powell was "unprepared" during prior testimony — a more critical Republican take on the Fed chair himself. Ray Lewis at The National News Desk published a fuller version of Powell's January statement connecting the investigation to political pressure on monetary policy. The Economy reported the previously unreported detail that eleven Senate Democrats formally urged Scott to halt the confirmation process entirely. Yahoo Finance surfaced Treasury Secretary Bessent's suggestion that the Banking Committee, not the DOJ, should handle the renovation inquiry — and noted that Tillis's freedom from reelection pressures may explain his willingness to hold firm. The Washington Post reported earlier that the probe "revealed the extent of support from GOP lawmakers and the finance community for an independent central bank."

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