Tillis says DOJ probe of Powell ‘reaching the point of the absurd’

Sen. Thom Tillis (R-N.C.) on Wednesday suggested that the Justice Department should admit it made a mistake by launching an investigation related to Federal Reserve Chair Jerome Powell.

Asked by reporters about a potential off-ramp to his objections to moving any Fed nominees — including President Donald Trump's pick for chair, Kevin Warsh — until the DOJ probe is resolved, Tillis responded: “I’m not going to try and help them out of a box canyon.”

“There’s one way out of a box canyon,” he added. “It’s admitting you made a mistake.”

The Justice Department issued subpoenas in January to the Fed, probing Powell’s statements to Congress about the central bank’s headquarters renovations. The probe was revealed by the Fed chair himself in an unprecedented video message where he accused the administration of using the investigation to pressure him to lower interest rates. Tillis has expressed similar fears.

“You got seven witnesses at this alleged scene of the crime — Republican members of the Banking Committee, including the chair, who said no crime was committed,” Tillis said. “What part of this is not reaching the point of the absurd?”

The senator also said in a post on X that he was awaiting clarification from the D.C. District Court, an apparent reference to an effort by the Fed to challenge the subpoenas. Typically, pre-indictment grand jury proceedings remain sealed.

Tillis said it was his hope that the issue would be resolved in time for Warsh to be confirmed to take over as Fed chief when Powell’s term ends in May.

He met with Warsh on Tuesday and said in his post that, "He possesses impeccable credentials and a clear vision for maintaining the Fed's independence while achieving its dual mandate. It is unfortunate that an ongoing investigation prevents me from voting."

Connor O'Brien and Kyle Cheney contributed to this report.