Sen. Thom Tillis says he will block any nomination President Trump makes to the Federal Reserve until a legal case against Chair Jerome Powell is resolved.
The North Carolina Republican laid down the marker after Mr. Powell revealed Sunday that the Fed had received a grand jury subpoena from the Justice Department related to his testimony to Congress about a renovation project.
“If there were any remaining doubt whether advisers within the Trump administration are actively pushing to end the independence of the Federal Reserve, there should now be none,” Mr. Tillis said. “It is now the independence and credibility of the Department of Justice that are in question.”
Mr. Tillis is a member of the Senate Banking Committee, which oversees Fed nominations.
He recently opted not to run for reelection, and has been outspoken recently about the administration. He recently chastised a top Trump aide, Stephen Miller, over his comment about possible U.S. control of Greenland.
In this case, the senator linked arms with Democrats who decried Mr. Trump’s pressure campaign against Mr. Powell.
For months, Mr. Trump has urged the Fed to cut interest rates deeply to juice the economy. Central bankers have cut rates recently, though more cautiously than Mr. Trump would like.
The Justice Department has not revealed any details about the probe, although Mr. Powell signaled that prosecutors may believe he lied to Congress about the renovations of federal buildings in Washington.
“Those are pretexts,” Mr. Powell said Sunday. “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.”
Mr. Trump told NBC News he did not know anything about the probe.
“I don’t know anything about it, but he’s certainly not very good at the Fed, and he’s not very good at building buildings,” Mr. Trump said.
Mr. Powell’s term ends in May.
Mr. Trump is expected to name a successor soon. His top economic official, Kevin Hassett, is considered the front-runner.
Mr. Powell says he will serve out his term.
“Public service sometimes requires standing firm in the face of threats, he said. “I will continue to do the job the Senate confirmed me to do, with integrity and a commitment to serving the American people.”
The Fed renovation project is about $700 million over budget, something Mr. Trump has criticized repeatedly as foolish and perhaps related to fraud.
The president also has tried to reshape the Fed to his liking. He attempted to fire Governor Lisa Cook over claims of mortgage fraud, sparking a legal fight that has reached the Supreme Court.
Mr. Powell told Congress that many claims about a lavish Fed renovation were untrue and that overruns were due to the unexpected cost of materials and other building issues.
Senate Minority Leader Charles E. Schumer, New York Democrat, backed Mr. Powell on Sunday as the Justice Department circled.
“This is the kind of bullying that we’ve all come to expect from Donald Trump and his cronies. Anyone who is independent and doesn’t just fall in line behind Trump gets investigated,” Mr. Schumer said.
“Jay Powell and the Fed aren’t the reason Trump’s economy and his poll numbers are in the toilet. If he’s looking for the person who caused that he should look in the mirror,” Mr. Schumer said.
