Federal Reserve Chairman Jerome Powell speaks during a press conference following the Federal Open Markets Committee meeting at the Federal Reserve on December 10, 2025 in Washington, DC.
Chip Somodevilla | Getty Images News | Getty Images
President Donald Trump will face a major obstacle in his bid to replace Federal Reserve Chair Jerome Powell — from within his own party.
Sen. Thom Tillis, R-N.C., said Sunday he would block any Trump appointments to the central bank, including the new chairman, in light of weekend revelations that the Justice Department is investigating Powell on possible perjury charges.
“If there was any doubt about whether advisers within the Trump administration were actively pushing to end the Federal Reserve’s independence, there should be none now. Now the Justice Department’s independence and credibility are in question,” Tillis said in a statement.
“I will decline to confirm any nominee to the Fed – including the upcoming Fed Chair vacancy – until this legal matter is fully resolved,” he added.
This position significantly complicates the path to succeeding Powell, whose term as chairman expires in May. The Banking Committee, of which Tillis sits, includes 13 Republicans and 11 Democrats, so even a single defection means a stalemate.
Tillis typically supports Trump but has occasionally broken with the president. For example, he was one of only two Republican senators to vote against the “One Big Beautiful Bill” spending package last year.
Powell’s position isn’t the only one at stake.
Stephen Miran’s term as governor ends in January and there have been talks of possible resignations, particularly of Deputy Chairman Philip Jefferson.
However, the news that the office of US Attorney Jeanine Pirro, a Trump confidant and former Fox News host, is investigating Powell for perjury clouds the situation. Powell released a statement on Sunday acknowledging the investigation and claiming it was a pretext to give Trump power over the Fed.
“No one, least of all the Federal Reserve Chair, is above the law, but this unprecedented action should be viewed in the broader context of the administration’s threats and continued pressure,” Powell said.
Tillis isn’t the only member of the banking board 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 to have a “sock puppet” at the helm of the Fed and do his bidding by cutting interest rates.
“Trump is abusing the Justice Department’s authorities like a would-be dictator to make the Fed serve his interests and those of his billionaire friends. This committee and the Senate should not recommend a Trump nominee for the Fed, including Fed Chair,” Warren said in a statement.
While Powell’s term as chairman ends in May, he can remain as governor until 2028. He has not yet indicated whether he will do so.
The White House has conducted an extensive search for the new leader, narrowing the field of candidates to five. Trump has indicated he will nominate a candidate this month.
CNBC has reached out to the White House and the Justice Department for comment.