‘Holding the entire country hostage’: White House accuses GOP senator of blocking Trump’s Fed pick over his stance on one investigation

The White House is upset with Senator Thom Tillis from North Carolina. White House press secretary Karoline Leavitt accused him of “holding the entire country and our economy hostage” because he refuses to confirm President Donald Trump‘s pick to lead the Federal Reserve.

The issue started when Tillis promised to oppose any nominee until the government stops its criminal investigation of current Fed Chair Jerome Powell. Leavitt criticized this move in a recent interview. “I certainly don’t think a United States sitting senator should be holding the entire country and our economy hostage over the fact that he has some political disagreements with an investigation that the Department of Justice is overseeing,” Leavitt said, according to Fox News. 

The nominee caught in this situation is Kevin Warsh. Leavitt called Warsh a “highly qualified and distinguished economist with a very exceptional resume.” Tillis doesn’t disagree with Warsh’s qualifications, but he’s using his power to block the confirmation as a protest against what he sees as a politically motivated investigation of Powell.

The standoff reveals deeper concerns about political pressure on the Federal Reserve

Tillis made his position clear on social media. The senator’s firm stance against all Fed nominees drew attention from both parties. He wrote on social media that “the Department of Justice continues to pursue a criminal investigation into Chairman Jerome Powell based on committee testimony that no reasonable person could construe as possessing criminal intent.”

He stated his firm stance: “I will oppose the confirmation of any Federal Reserve nominee, including for the position of Chairman, until the DOJ’s inquiry into Chairman Powell is fully and transparently resolved.” The Department of Justice is investigating whether Powell knowingly misled lawmakers about the cost and timeline of a $2.5 billion renovation of the Federal Reserve’s headquarters. Powell has led the Fed since President Trump nominated him in 2017.

Many lawmakers from both parties believe the investigation is really an attempt by President Trump to pressure Powell to cut interest rates. Trump has repeatedly and publicly called for lower rates. Some critics worry that Trump’s actions could lead to impeachment if he continues pushing boundaries.

However, Powell has refused those demands, arguing that the Federal Reserve must stay independent to do its job properly. The Fed controls the money supply and credit conditions to keep the U.S. financially stable, control inflation, and maximize employment. Powell says this mission must stay separate from any administration’s political goals.