A North Carolina Republican senator announced Sunday he will no longer obstruct the confirmation process for Federal Reserve chair nominee Kevin Warsh, following the Justice Department’s decision Friday to end its investigation into current Fed Chair Jerome Powell.
Senator Thom Tillis had previously threatened to prevent any Federal Reserve nomination from moving forward while the DOJ probe remained active, citing concerns about protecting the central bank’s independence from political interference.
“I am prepared to move on with the confirmation of Mr. Warsh,” Tillis stated during his appearance on NBC’s “Meet the Press.” “I think he’s going to be a great Fed chair.”
This development removes a significant obstacle for Warsh and opens the door for Senate confirmation before Powell’s leadership term expires on May 15.
Powell revealed in January that the Justice Department had launched a criminal probe into his oversight of a $2.5 billion renovation project involving two Federal Reserve buildings in Washington. In a strongly-worded video statement released on a Sunday evening, Powell characterized the investigation as intimidation and accused the Trump administration of attempting to coerce the Fed into reducing interest rates.
A federal judge ruled in March to halt the DOJ’s subpoenas, determining they were issued with the inappropriate goal of pressuring Powell to either cut rates or step down. U.S. Attorney Jeanine Pirro indicated she would challenge the ruling and as recently as last week publicly stated her intention to continue the investigation.
However, on Friday, Pirro announced on X that she was terminating the probe and would request the Fed’s inspector general, who has been conducting a separate review of the renovations for several months, to assume responsibility for the matter.
Tillis emphasized that his opposition was never directed at Warsh personally, describing the nominee’s qualifications as “impeccable” during Tuesday’s confirmation hearing.
Warsh previously served as a Fed governor between 2006 and 2011 and has outlined plans to reform the Fed’s monetary policy approach while enhancing coordination with the Treasury and other government agencies on non-monetary issues.
During his hearing before lawmakers, Warsh stated that Trump had not attempted to secure any commitment from him to reduce interest rates. He also expressed that tariffs were not a significant concern regarding inflation and suggested that Fed officials might be relying on inflation measurements that exaggerate pricing pressures.
With Tillis now backing the nomination, Senate Banking Committee Republicans possess the necessary majority to overcome unified Democratic resistance and send Warsh’s nomination to the full Senate, where Republican lawmakers are anticipated to confirm him.
The timeline remains challenging with approximately three weeks remaining before Powell’s chairmanship concludes, including one week when the Senate is scheduled for recess. The Senate has previously confirmed a Fed nominee in under three weeks on only one occasion.
Powell has indicated he would continue serving as interim chair if Warsh’s confirmation is not completed by May 15.
Following Warsh’s installation as Fed chair, Powell may continue as a governor under a term extending another year and a half.
“I have no intention of leaving the Board until the investigation is well and truly over, with transparency and finality,” Powell declared last month.
Pirro stated Friday that she might restart her investigation based on the inspector general’s conclusions. Democratic Senators Elizabeth Warren of Massachusetts and Dick Durbin of Illinois criticized that statement Friday as a threat of “future baseless investigations” targeting Powell or other Fed governors.
