President Trump faces a major hurdle in replacing Federal Reserve Chair Jerome Powell, as Republican Sen. Thom Tillis announced he will block any Fed nominees until a Justice Department investigation into Powell for potential perjury is resolved.

Tillis’ opposition complicates confirmation efforts, given the Republican-Democrat balance on the Senate banking committee.

Powell acknowledged the investigation, calling it a pretext for giving Trump control over the Fed, while Democrats, including Sen. Elizabeth Warren, criticized the move as an attempt to install a “sock puppet” to lower interest rates.

Other Fed leadership positions, including Vice Chair Philip Jefferson’s, are also under scrutiny amid potential retirements, CNBC has reported.

The White House has narrowed its candidate search to five finalists, with a nominee expected this month, though Powell could remain a governor until 2028.