Bessent Backs Possible Senate Probe Of Powell Instead Of DOJ As Republicans Look To Break Senator Tillis’ Opposition: Report

• According to the report, GOP lawmakers see this as a compromise and an attempt to placate Tillis.
• Another lawmaker stated that the proposal would serve to investigate Powell, according to the report, which is what President Trump wants.
• Earlier, Sen. Tillis stated that protecting the Fed's independence from political interference or legal intimidation is non-negotiable.

Treasury Secretary Scott Bessent reportedly agreed with lawmakers that Federal Reserve Chair Jerome Powell could be investigated by the Senate Banking Committee instead of the U.S. Department of Justice.

According to a Semafor report citing sources from a closed-door meeting of Senate Republicans, the discussion was an attempt at “testing the waters” to see if this could get Senator Thom Tillis (R-N.C.) to withdraw his opposition to the nomination of President Donald Trump’s Federal Reserve Chair pick, Kevin Warsh.

Last month, Sen. Tillis said he would oppose the nomination until an investigation into outgoing Fed Chair Jerome Powell is resolved.

Attempt To Placate Tillis

According to the report, GOP lawmakers see this as a compromise and an attempt to placate Tillis.

“They’re trying to dangle this in front of Thom to see if he’ll accept it. Thom, he was poker-face,” an unnamed GOP lawmaker stated, adding that they would be shocked if Tillis accepted the proposal.

Another lawmaker stated that the proposal would serve the purpose of investigating Powell, according to the report, which is what President Trump wants.

Tillis Explains His Opposition

Explaining his opposition to the DOJ probe into Powell, the North Carolina Senator added that protecting the independence of the Fed from political interference or legal intimidation is non-negotiable.

“My position has not changed: 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,” Tillis said in a post on X.

Tillis is a member of the Senate Banking, Housing, and Urban Affairs Committee. His refusal to vote could lead to a potential stalemate, as the committee has 13 Republicans and 11 Democrats.

What Is The Powell Probe About?

At the heart of the investigation into Fed Chair Powell is a $2.5 billion renovation of the Fed’s Eccles Building.

In July 2025, Rep. Anna Paulina Luna announced that she had referred Powell to the DOJ for potential perjury related to his testimony about the Federal Reserve headquarters renovation project.

Reacting to the probe, Powell warned that its outcome would determine whether the central bank could set monetary policy going forward, or whether it would instead be directed by political pressure or intimidation.

“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” he said.

Meanwhile, U.S. equities gained in Thursday’s pre-market trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up by 0.29%, the Invesco QQQ Trust ETF (QQQ) rose 0.26%, and the SPDR Dow Jones Industrial Average ETF Trust (DIA) gained 0.32%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bearish’ territory.

The iShares 20+ Year Treasury Bond ETF (TLT) was up by 0.23% at the time of writing, while the iShares 7-10 Year Treasury Bond ETF (IEF) rose 0.08%.

Also See: Why Is AIIO Stock Soaring Pre-Market Today?

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