Senator Tillis Votes No on Fed Chair Nominee Over Probe

Senator Thom Tillis announced his decision to vote against Jerome Powell’s reappointment as Chair of the Federal Reserve. Tillis cited a “bogus” investigation into Powell’s personal finances as the main reason for his opposition. The senator explained his concerns during a recent hearing, emphasizing that the ongoing probe unfairly delays Powell’s confirmation process.

Concerns Over Powell’s Reappointment

Tillis acknowledged Powell’s strong qualifications and commitment to the Fed’s independence. He stated that Powell’s credentials are “impeccable” and praised his approach to ethical matters. However, Tillis expressed significant reservations about the timing and nature of the investigation launched against Powell.

The investigation reportedly stems from a building project that went significantly over budget. Tillis, however, downplayed the severity of the project’s financial issues.

He noted that cost overruns in government projects are common, citing factors like rising material costs and unexpected discoveries like asbestos and landfill conditions. He suggested that the budget overage, when adjusted for inflation, was largely justifiable.

“The problem that I have here is that we had some U.S. attorney with a dream or assistant U.S. attorney thinking it would be cute to bring Chair Powell under an investigation just a few months before the position was going to be open,” Tillis stated. He questioned the motives behind initiating such a probe so close to a critical confirmation hearing.

Fed Independence and Transparency

Tillis stressed the importance of the Federal Reserve’s independence. He supports the idea of the Fed maintaining independence to achieve its dual mandate of maximum employment and stable prices. He also highlighted the need for greater transparency in other Fed operations, such as bank examinations and supervision.

“I love your focus on the independence of the Fed. I love the idea of Fed independence with respect to achieving the dual mandate, but Fed transparency on so many other things that the Fed does that, frankly, we’re all frustrated with,” Tillis explained. He believes the public and Congress should have more insight into these areas.

The Department of Justice’s Role

A key point of contention for Senator Tillis was the apparent lack of communication within the Department of Justice (DOJ) regarding the investigation. He mentioned that even high-ranking officials, including the Attorney General, seemed unaware of the probe.

“Big DOJ didn’t know about it. The president didn’t know about it.

Let’s get rid of this investigation so I can support your confirmation,” Tillis urged. He believes the investigation should be halted to allow the confirmation process to proceed fairly.

Tillis drew a parallel to other government projects, suggesting that widespread investigations into budget overruns could lead to mass incarceration. He argued that the issues with Powell’s building project, while unfortunate, were not criminal in nature and were largely explained by legitimate factors.

Looking Ahead

Senator Tillis concluded by stating his willingness to support Powell’s nomination once the investigation is resolved. He expressed interest in examining capital expenditure projects across federal agencies. He also humorously noted his surprise that Powell had never watched an episode of the popular sitcom “Seinfeld.”

The senator’s vote highlights the scrutiny federal nominees face, particularly concerning personal finances and ethical considerations. The outcome of this investigation and the DOJ’s next steps will be crucial in determining Powell’s future at the helm of the Federal Reserve.

Source: GOP Sen, Tillis explains why he is voting no on Trump's Fed chair pick (YouTube)