Leavitt criticizes Tillis over blocked Fed nominee amid Powell inquiry

White House press secretary Karoline Leavitt has accused Senator Thom Tillis of North Carolina of obstructing the confirmation of President Donald Trump’s nominee to chair the Federal Reserve. Tillis has vowed to oppose the nomination until the Department of Justice concludes its probe of current Fed Chair Jerome Powell.

Federal Reserve Nomination and Investigation

White House press secretary Karoline Leavitt criticized Senator Thom Tillis’s stance on the Federal Reserve nomination, calling his actions a tactic of holding the country and its economy “hostage.” She defended Trump’s nominee, Kevin Warsh, as a “highly qualified and distinguished economist.”

Senator Tillis’s Opposition

Senator Tillis does not dispute Warsh’s qualifications but objects to the ongoing investigation into Federal Reserve Chair Jerome Powell. He stated on X that the Department of Justice continues to pursue a criminal investigation into Powell based on testimony that he believes lacks criminal intent. Tillis has pledged to block any Federal Reserve nominee, including the chairmanship, until the investigation is fully and transparently resolved.

The Investigation of Jerome Powell

The Department of Justice is investigating whether Jerome Powell knowingly misled lawmakers regarding a $2.5 billion renovation of the Federal Reserve’s headquarters. While the investigation is separate from Powell’s duties as Fed chair, lawmakers have expressed concerns that it may be an attempt by Trump to pressure Powell to lower interest rates.

Trump’s Comments and the Federal Reserve’s Independence

Donald Trump has repeatedly called for lower interest rates. Powell has resisted these calls, emphasizing the need for the Federal Reserve’s independence from political influence. The Federal Reserve’s mission is to maintain U.S. financial stability by managing the money supply and credit conditions to control inflation and maximize employment.