White House Slams Tillis ‘Hostage’ Tactics in Fed Showdown

Paul Riverbank, 2/2/2026White House-Fed feud, DOJ probes, and immigration crackdown spark high-stakes national economic consequences.

Here’s the lay of the land. President Trump wants economist Kevin Warsh to take the Fed’s top job. Leavitt was out front this weekend touting Warsh’s credentials, referring to him as “a highly qualified and distinguished economist with a very exceptional resume.” She seemed keen to distance Warsh from controversy—namely, the ongoing DOJ investigation of current Fed chair Jerome Powell. That probe, to hear the White House tell it, shouldn’t muddy the waters for Warsh’s confirmation. The feud, though, has everything to do with Powell, who’s found himself in the DOJ’s crosshairs for testimony about costs and construction timelines tied to the central bank’s sprawling, $2.5 billion headquarters revamp.

Tillis, however, isn’t buying the distinction. In a pointed message posted on X, he insisted, “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.” For him, it’s not a matter of credentials. Instead, he’s irked that the Justice Department is still pursuing criminal charges based on what he describes as committee testimony that “no reasonable person could construe as possessing criminal intent.”

Observers on Capitol Hill see something deeper in this standoff: a raw contest over the independence of America’s central bank. Jerome Powell, installed during Trump’s first term, has declined to cave to pressure for dramatic interest rate cuts, even as President Trump urges a looser policy line. Some lawmakers see Tillis’s hardball tactics as a warning shot, with the potential to chill the Fed’s resolve at a time when inflation, home lending, and business loans all hang in the balance.

The drama over the Fed comes as the White House ramps up efforts on another front: immigration. On Fox News, Leavitt doubled down, promising that President Trump “will never waver in the commitment that he made to the nearly 80 million Americans who voted for him to deport illegal alien criminals, who broke our nation’s laws to get here, and then have committed further crimes of violence against American citizens.” She drew a hard line—one that’s become a defining feature of Trump-era politics.

But while the administration spotlights its crackdown, economists and policy experts are asking hard questions about the price tag. An expert panel recently dissected just what the average American family might be facing if these policies become reality. The answer: roughly $2,150 more per year by the end of the decade, a figure that covers everything from pricier groceries to steeper housing bills. The analysts pointed to supply chain shifts, labor shortages in farming and hospitality, and a possible slowdown in small business hiring. Talk to a Philly restaurateur or a New Jersey builder, and you’ll hear about the scramble to find workers—roles immigrants have long filled in the region.

Apart from the headlines, the numbers underscore a local reality. Immigrants living in Philadelphia, for instance, pump an estimated $40 billion into the metro economy annually and shoulder about $13 billion in taxes. Their absence, experts warn, wouldn’t just hit bottom lines; it would empty classrooms and complicate the hunt for nurses, tradespeople, or farmhands.

Washington’s new rules aren’t only aimed at people crossing the border illegally, either. There’s been a marked slowdown in visas for students, professionals, and even refugees, with projections suggesting legal immigration could tumble by half within four years if current policies stick. Given the nation’s steadily declining birth rate, that’s prompted worries about a potential squeeze on Medicare, Social Security, and the basic ability of employers to fill open jobs.

None of this seems likely to sway the administration, at least for now. Leavitt has made it clear the president remains committed to his campaign promises. In her words: “The president will be the decider on any policy changes.” Immigration, the Fed, inflation—they’re more than just bullet points for a campaign speech. These issues land at grocery stores, city halls, and dinner tables across America.

Sometimes, people treat Washington as a distant spectacle, all heat and little light. But in these weeks, whether the drama is unfolding in the marbled corridors of the Fed or at packed immigration town halls, it’s clear the stakes are real—and personal. The choices and clashes gripping D.C. will ripple, as they always do, through budgets, businesses, and the very identity of a nation in flux.

Tensions boiled over Sunday morning when White House press secretary Karoline Leavitt blasted North Carolina Republican Thom Tillis in an appearance on national television. She accused the senator of effectively holding the nation’s economic well-being “hostage,” all because of a feud over who should lead the Federal Reserve. It’s the sort of drama that’s more at home in a political thriller than a policy debate—a nomination, a probe, and a senator threatening to gum up the works until he gets satisfaction from the Justice Department.Here’s the lay of the land. President Trump wants economist Kevin Warsh to take the Fed’s top job. Leavitt was out front this weekend touting Warsh’s credentials, referring to him as “a highly qualified and distinguished economist with a very exceptional resume.” She seemed keen to distance Warsh from controversy—namely, the ongoing DOJ investigation of current Fed chair Jerome Powell. That probe, to hear the White House tell it, shouldn’t muddy the waters for Warsh’s confirmation. The feud, though, has everything to do with Powell, who’s found himself in the DOJ’s crosshairs for testimony about costs and construction timelines tied to the central bank’s sprawling, $2.5 billion headquarters revamp.Tillis, however, isn’t buying the distinction. In a pointed message posted on X, he insisted, “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.” For him, it’s not a matter of credentials. Instead, he’s irked that the Justice Department is still pursuing criminal charges based on what he describes as committee testimony that “no reasonable person could construe as possessing criminal intent.”Observers on Capitol Hill see something deeper in this standoff: a raw contest over the independence of America’s central bank. Jerome Powell, installed during Trump’s first term, has declined to cave to pressure for dramatic interest rate cuts, even as President Trump urges a looser policy line. Some lawmakers see Tillis’s hardball tactics as a warning shot, with the potential to chill the Fed’s resolve at a time when inflation, home lending, and business loans all hang in the balance.The drama over the Fed comes as the White House ramps up efforts on another front: immigration. On Fox News, Leavitt doubled down, promising that President Trump “will never waver in the commitment that he made to the nearly 80 million Americans who voted for him to deport illegal alien criminals, who broke our nation’s laws to get here, and then have committed further crimes of violence against American citizens.” She drew a hard line—one that’s become a defining feature of Trump-era politics.But while the administration spotlights its crackdown, economists and policy experts are asking hard questions about the price tag. An expert panel recently dissected just what the average American family might be facing if these policies become reality. The answer: roughly $2,150 more per year by the end of the decade, a figure that covers everything from pricier groceries to steeper housing bills. The analysts pointed to supply chain shifts, labor shortages in farming and hospitality, and a possible slowdown in small business hiring. Talk to a Philly restaurateur or a New Jersey builder, and you’ll hear about the scramble to find workers—roles immigrants have long filled in the region.Apart from the headlines, the numbers underscore a local reality. Immigrants living in Philadelphia, for instance, pump an estimated $40 billion into the metro economy annually and shoulder about $13 billion in taxes. Their absence, experts warn, wouldn’t just hit bottom lines; it would empty classrooms and complicate the hunt for nurses, tradespeople, or farmhands.Washington’s new rules aren’t only aimed at people crossing the border illegally, either. There’s been a marked slowdown in visas for students, professionals, and even refugees, with projections suggesting legal immigration could tumble by half within four years if current policies stick. Given the nation’s steadily declining birth rate, that’s prompted worries about a potential squeeze on Medicare, Social Security, and the basic ability of employers to fill open jobs.None of this seems likely to sway the administration, at least for now. Leavitt has made it clear the president remains committed to his campaign promises. In her words: “The president will be the decider on any policy changes.” Immigration, the Fed, inflation—they’re more than just bullet points for a campaign speech. These issues land at grocery stores, city halls, and dinner tables across America.Sometimes, people treat Washington as a distant spectacle, all heat and little light. But in these weeks, whether the drama is unfolding in the marbled corridors of the Fed or at packed immigration town halls, it’s clear the stakes are real—and personal. The choices and clashes gripping D.C. will ripple, as they always do, through budgets, businesses, and the very identity of a nation in flux.