Federal Reserve Chairman Jerome Powell speaks during a press conference after the Federal Reserve Board’s Federal Open Market Committee meeting in Washington, DC on December 10, 2025.
Chip Somodevilla | Getty Images News | Getty Images
President Donald Trump will face significant obstacles from within his own party as he seeks to replace Federal Reserve Chairman Jerome Powell.
Sen. Thom Tillis, R-N.C., said Sunday he would block anyone President Trump appoints to the central bank, including the new chairman, after it was revealed over the weekend that the Justice Department was investigating Powell for perjury.
“If there was ever any question about whether advisers within the Trump administration were actively pushing for an end to the independence of the Federal Reserve Board, there should be no doubt now. What is at stake now is the independence and credibility of the Department of Justice,” Tillis said in a statement.
“Until this legal issue is fully resolved, I will oppose confirmation of any future Fed nominations, including future Fed chair vacancies,” he added.
This position greatly complicates the path to succeeding Mr. Powell, whose term as chairman expires in May. Tillis serves on the Banking Committee, which has 13 Republicans and 11 Democrats, so even one defection could create a stalemate.
Tillis usually supports Trump, but occasionally breaks with the president. For example, he was one of only two Republican senators to vote against the “Big Beautiful Bill” spending package last year. Mr. Tillis will retire from the Senate at the end of his term.
Powell’s position is not the only one at stake.
Governor Stephen Millan’s term ends in January, and there have been rumors, particularly of Vice Speaker Philip Jefferson’s possible resignation.
But the situation is clouded by news that the office of U.S. Attorney Jeanine Pirro, a Trump confidante and former Fox News host, is investigating Powell for perjury. Chairman Powell issued a statement Sunday acknowledging the investigation and claiming it was an excuse to give President Trump more power over the Fed.
“While no one is above the law, including the Fed Chairman, this unprecedented action should be viewed in the broader context of the administration’s threats and continued pressure,” Powell said.
Tillis is not the only member of the Banking Committee to criticize President Trump over the move.
Sen. Elizabeth Warren (D-Mass.), who previously called Powell a “dangerous person” and opposed his reappointment, accused Trump of wanting to lead the Fed as a “sock puppet” who would do his bidding by cutting interest rates.
“As Trump abuses the power of the Justice Department like a would-be dictator, the Fed, along with his billionaire friends, is serving his interests,” Warren said in a statement. “This committee and the Senate should not move forward with Trump’s nominations for the Fed, including the Fed chairman.”
Powell’s term as chairman ends in May, but he could remain in the role until 2028, although he has not yet indicated whether he will do so.
The White House is conducting an extensive search for a new chair, with candidates narrowed down to five. President Trump has indicated that he intends to nominate a candidate this month.
CNBC has reached out to the White House and Department of Justice for comment.
