President Trump announced his intention to nominate a replacement for Federal Reserve Chair Jerome Powell within "the next few weeks," despite mounting Republican opposition over a Justice Department criminal investigation into the central bank's headquarters renovation project. The announcement came during a factory tour in Michigan, where Trump indicated he would proceed with his nomination plans regardless of the political backlash.

Republican Senate Opposition Threatens Confirmation

Key Republican lawmakers have expressed strong concerns about the Justice Department probe, creating potential obstacles for Trump's eventual nominee. Senator Thom Tillis, a retiring North Carolina Republican and crucial swing vote on the Senate Banking Committee, has threatened to block all Fed nominations until the investigation is resolved. Trump responded critically to Tillis's position, stating "That's why Thom's not going to be a senator any longer."

The opposition extends beyond Tillis, with GOP Senators Lisa Murkowski and Kevin Cramer also criticizing the investigation. This Republican pushback threatens to derail confirmation proceedings for Trump's chosen successor to Powell.

Trump Defends Investigation, Criticizes Powell

Trump offered a tacit defense of the Justice Department probe while launching sharp criticism at Powell over the renovation project's financial management. Speaking at the White House, Trump characterized the situation in stark terms:

In a CBS News interview, Trump claimed without providing evidence that "more people like it than not," while acknowledging he "couldn't help" public perceptions of the investigation.

Investigation Details and Fed Response

Powell revealed that the Justice Department had served the Federal Reserve with grand jury subpoenas related to the headquarters renovation project and his congressional testimony about it. The Fed Chair characterized the investigation as "pretexts" for broader political pressure regarding interest rate policies.

Powell emphasized the fundamental issue at stake: "This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation." A Fed spokesperson declined to comment on Trump's recent remarks.

Bipartisan Criticism of Investigation

The probe has drawn unprecedented criticism from former financial leadership across party lines. Three former Fed chairs and four former Treasury secretaries representing both Republican and Democratic administrations issued a joint statement condemning the investigation. They declared it "has no place in the United States whose greatest strength is the rule of law, which is at the foundation of our economic success."

Implications for Fed Independence

The controversy represents a dramatic escalation in the Trump administration's conflicts with the Federal Reserve and raises significant questions about the institution's independence. Trump has previously indicated he would only select a Fed Chair who commits to lowering interest rates, establishing a political litmus test that challenges traditional Fed autonomy. Powell's term as chair ends in May, and Trump has repeatedly considered firing him before that date.

President Trump escalated his criticism of Federal Reserve Chair Jerome Powell, calling him either "incompetent" or "crooked" following a Justice Department criminal investigation into the central bank's headquarters renovation project. The sharp rebuke came as Trump departed the White House for an economic speech in Detroit on Tuesday.

Trump's Direct Attack on Powell

"He's billions of dollars over budget, so, either he's incompetent or he's crooked," Trump told reporters. "I don't know what he is, but he certainly doesn't do a very good job." The comments represent a dramatic escalation in the administration's attacks on the Federal Reserve and raise fresh concerns about the institution's independence.

Justice Department Investigation Details

The criminal probe centers on the Federal Reserve's headquarters renovation project and Powell's congressional testimony regarding the matter. Powell revealed on Sunday that the Justice Department had served the Fed with grand jury subpoenas related to the investigation, which was first disclosed over the weekend.

Bipartisan Congressional Pushback

The investigation has prompted significant opposition from Republican senators, threatening to complicate Trump's efforts to nominate Powell's successor. Key congressional responses include:

Former Officials Condemn Investigation

Three former Federal Reserve chairs and four former Treasury secretaries from both Republican and Democratic administrations issued a joint statement condemning the investigation. They declared that "it has no place in the United States whose greatest strength is the rule of law, which is at the foundation of our economic success."

Powell's Response and Fed Independence Concerns

Powell characterized the renovation investigation as "pretexts" for broader political pressure regarding interest rates. "This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation," he stated on Sunday.

Trump had previously told NBC News he didn't know about the subpoenas, appearing to distance himself from the investigation. However, he has consistently criticized Powell and demanded lower interest rates, stating he won't select a new chair unless they commit to rate reductions. Powell's term as chair ends in May, and Trump is currently considering potential successors.