In a significant move reflecting rising tensions around the Federal Reserve’s independence, Republican Senator Thom Tillis of North Carolina has pledged to obstruct all Federal Reserve nominations following the Justice Department’s initiation of a criminal investigation into Fed Chair Jerome Powell. This action raises serious questions about the central bank’s autonomy.

As a member of the banking committee, which oversees Fed appointments, Tillis announced his decision on Sunday, stating he would oppose any nominations, including the imminent vacancy for chair, “until this legal matter is fully resolved.”

Tillis expressed his concerns on social media, asserting, “If there were any remaining doubts 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.”

Alaska Senator Lisa Murkowski also chimed in, revealing her discussion with Powell on Monday morning. She characterized the administration’s investigation as a “coercive attempt” and suggested that Congress should investigate the Department of Justice.

This backlash follows a subpoena issued by the Justice Department on Friday, linked to Powell’s testimony before the Senate in June regarding the escalating costs associated with the Fed’s headquarters renovation. Powell confirmed the subpoena on Sunday, labeling it a part of a pressure campaign stemming from the administration’s dissatisfaction with the Fed’s interest rate policy.

In a video statement, Powell addressed the situation, noting, “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.”

Since returning to office last January, President Trump has actively urged Powell to lower interest rates and has hinted at the possibility of replacing him. Powell’s term is set to expire in May, and Trump previously indicated he would evaluate Powell’s successor based on their willingness to implement immediate rate cuts.

Despite the investigation, Trump claimed to NBC News that he had no prior knowledge of the probe but criticized Powell’s leadership, stating, “I don’t know anything about it, but he’s certainly not very good at the Fed.” He further insisted that the investigation was unrelated to interest rates, saying, “What should pressure him is the fact that rates are far too high. That’s the only pressure he’s got.”

The Federal Reserve is designed to function as an independent body within the U.S. government, aimed at insulating monetary policy from political maneuvering—a principle considered vital for sustaining economic stability and credibility. In his statement, Powell remarked, “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.”