Lawmakers expressed concern regarding the Justice Department's criminal inquiry into Federal Reserve Chairman Jerome Powell, potentially jeopardizing President Donald Trump's ability to appoint a new head of the central bank. Powell disclosed Sunday that the DOJ served the Fed with grand jury subpoenas, raising the possibility of a criminal indictment related to his testimony before the Senate last June concerning cost overruns during headquarters renovations.

Powell characterized the allegations as a pretext, suggesting the investigation was aimed at undermining the Fed's independence in setting interest rates without political influence. President Trump has criticized Powell for the past year for his reluctance to lower rates, though he stated he was unaware of the DOJ probe.

Sen. Thom Tillis, a Republican member of the Senate Banking Committee, echoed Powell's sentiments and criticized the DOJ. "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," Tillis wrote in a post on X. "It is now the independence and credibility of the Department of Justice that are in question." Tillis also stated he would not confirm any nominee to the Federal Reserve until the case is resolved.

The investigation stems from Powell's testimony regarding renovations to the Federal Reserve headquarters. Cost overruns on the project have drawn scrutiny, leading to the DOJ's inquiry. The specific details of the potential criminal indictment remain unclear.

The Federal Reserve's independence from political pressure is a cornerstone of U.S. economic policy. The Fed's ability to set monetary policy without interference from the executive or legislative branches is intended to ensure stable prices and full employment.

The DOJ has not commented publicly on the investigation. The inquiry's impact on the Fed's operations and the potential nomination of a new chair remain uncertain. The Senate Banking Committee, on which Tillis serves, plays a crucial role in confirming presidential nominees to the Federal Reserve.