Trump says DOJ should continue Fed Chair Powell probe 'to the end'

• Sen. Thom Tillis (R-N.C.) announced he will oppose any new Fed nominee until the Powell investigation is fully resolved, potentially creating a Banking Committee stalemate that could block Kevin Warsh's confirmation.
• Trump suggested the Fed headquarters renovation involves 'either gross incompetence or theft of some kind, kickbacks,' while Powell has accused the administration of threatening prosecution due to the Fed's independent rate-setting decisions.
• The investigation involves grand jury subpoenas that the Fed has not yet fully complied with, according to reports, marking an unprecedented criminal probe of a sitting central bank chairman.

Summary: Trump Backs DOJ Investigation of Fed Chair Powell Despite Senate Opposition

Key Developments:

President Donald Trump stated Monday that the criminal investigation into Federal Reserve Chairman Jerome Powell should proceed "to the end," despite potential Senate roadblocks. U.S. Attorney for Washington Jeanine Pirro is leading the unprecedented probe into the central bank chief.

Political Implications:

Sen. Thom Tillis (R-N.C.), a member of the Senate Banking Committee, announced Friday he will oppose Trump's Fed chair nominee Kevin Warsh until the Powell investigation concludes. With the committee's 13-11 Republican majority, Tillis could create a stalemate by siding with Democrats, blocking Warsh's nomination from reaching a full Senate vote.

Investigation Background:

Powell publicly revealed the criminal investigation on January 11, accusing the administration of threatening prosecution because the Fed declined to lower interest rates per Trump's preferences. The probe centers on the Fed's "yearslong, multibillion-dollar renovation" of its Washington headquarters, with Trump alleging "gross incompetence or theft of some kind, kickbacks."

The Fed has reportedly not complied with grand jury subpoenas issued by Pirro's office. Powell has defended the headquarters renovation as cost-reducing over time and maintained the Fed makes rate decisions "based on our best assessment of what will serve the public."

Timeline:

Powell's term as Fed chairman expires in May 2026. Trump announced Warsh as his replacement pick last Friday following a months-long selection process.

Market Context:

The situation creates uncertainty around Federal Reserve leadership during a period when monetary policy independence remains contested between the White House and the central bank.