On January 12, 2026, Republican Senator Thom Tillis of North Carolina made headlines by declaring that the Department of Justice’s (DOJ) “independence and credibility” are now in question, especially Jerome Powell. This warning comes after the DOJ served grand jury subpoenas to Federal Reserve Chair Jerome Powell, threatening a criminal indictment over his past congressional testimony.
The Exact Problem: Why the DOJ’s Credibility is Under Fire
Senator Tillis and other critics argue that the DOJ is being used as a political tool to undermine the Federal Reserve’s independence.
- Political Intimidation: Tillis expressed concern that advisers within the Trump administration are “actively pushing to end the independence” of the Fed by using the DOJ to pressure Jerome Powell.
- The “Pretext” Argument: Jerome Powell stated that the DOJ’s investigation—officially focused on a building renovation project—is actually a pretext. He claims the real goal is to intimidate him into following the president’s preferences on interest rates.
- A “Low Point” in Central Banking: Historians have described this use of criminal law against a Fed Chair as an “unprecedented” attempt to bypass institutional guardrails.
The Claims: What is Jerome Powell Being Investigated For?
The DOJ’s investigation officially centers on whether Powell lied to Congress during his June 2025 testimony regarding a $2.5 billion renovation of Federal Reserve office buildings.
- Allegations of Extravagant Spending: Critics, including OMB Director Russell Vought and Rep. Anna Paulina Luna, claimed the Fed built “ostentatious” features like VIP dining rooms, rooftop gardens, and new water features using taxpayer money.
- Alleged Perjury: Rep. Luna referred Powell to the DOJ for potential perjury, claiming his denials of these features during testimony were “materially false” and contradicted by Federal Reserve records.
- Powell’s Defense: Powell called these descriptions “misleading and inaccurate,” stating there is no new marble, no special elevators, and no rooftop gardens. He maintains the Fed has been transparent with Congress about the project.
Social Media & Political Reactions
- Thom Tillis (R-NC): “If there were any remaining doubt whether advisers… are actively pushing to end the independence of the Federal Reserve, there should now be none.”. He vowed to block any future Fed nomineesuntil the matter is resolved.
- Elizabeth Warren (D-MA): Accused the president of abusing DOJ authorities like a “wannabe dictator” to make the Fed serve his personal interests.
- Gita Gopinath (IMF): Applauded Powell’s resistance to the investigation, calling it an attempt to use “lawfare” to subvert the Fed’s mission.
- Donald Trump: Denied knowing about the investigation but added, “He’s [Powell] certainly not very good at the Fed, and he’s not very good at building buildings.”.
