A key Republican senator has withdrawn his opposition to President Trump’s Federal Reserve chair nominee following the conclusion of a Justice Department investigation into the current Fed leadership.
North Carolina Senator Thom Tillis announced Sunday that he will support Kevin Warsh’s confirmation after federal prosecutors closed their probe into Fed chair Jerome Powell. Tillis’s previous resistance had created a significant obstacle for the nomination in the Republican-led Senate Banking Committee, with Powell’s current term set to expire May 15.
“I am prepared to move on with the confirmation of Mr. Warsh. I think he’s going to be a great Fed chair,” Tillis stated during his appearance on NBC’s “Meet the Press.” His comments came just two days after the U.S. attorney for Washington D.C. announced the end of the investigation into Powell.
The federal inquiry centered on the Federal Reserve’s costly headquarters renovation project, which has ballooned to $2.5 billion from initial projections of $1.9 billion. Powell’s congressional testimony about the construction work last summer was part of the investigation’s scope.
Tillis expressed his belief that no criminal activity occurred, saying: “I believe that there will not be any wrongdoing. May we find a little stupid here in terms of somebody responsible for the project making a decision they shouldn’t? Maybe. But it doesn’t rise to a criminal prosecution. That was my problem to begin with because I feel like there were prosecutors in D.C. that thought this was going to be a lever to have Mr. Powell leave early.”
The senator, who previously opposed Trump’s major tax legislation and announced he won’t seek reelection in 2026, said he received guarantees from the Justice Department that the matter is fully resolved. He noted that any future investigation would require a criminal referral from the inspector general.
The Senate Banking Committee scheduled a Wednesday vote on Warsh’s nomination following Tillis’s announcement. However, the committee’s top Democrat, Massachusetts Senator Elizabeth Warren, criticized the move, stating that “no Republican claiming to care about Fed independence should support moving forward the nomination of Kevin Warsh, who proved in his nomination hearing to be nothing more than President Trump’s sock puppet.”
During last week’s confirmation hearing, Warsh assured senators he had made no commitments to the White House regarding interest rate cuts and vowed to act independently if confirmed. This came after Trump told CNBC he would be disappointed if Warsh didn’t immediately lower rates upon taking office.
Tillis had strongly criticized the investigation led by U.S. Attorney Jeanine Pirro, a Trump supporter, calling it a “vindictive prosecution” that threatened the Fed’s traditional independence from political influence. He told NBC that Justice Department assurances helped him “feel like they were not using DOJ as a weapon to threaten the independence of the Fed.”
When asked Saturday about Warsh’s prospects, Trump expressed optimism, saying “I imagine it’s smooth” and calling his nominee “fantastic.” The president also mentioned wanting to understand how the Fed building renovation costs escalated so dramatically.
Trump had visited the Federal Reserve building in July, claiming on camera that renovations would cost $3.1 billion. Powell, standing beside him, disputed that figure after reviewing Trump’s documentation.
The Powell investigation was one of several Justice Department probes targeting Trump’s political opponents. Prosecutors had difficulty establishing grounds for criminal charges, and other similar investigations into figures like New York Attorney General Letitia James and former FBI Director James Comey have also failed to produce results.
A federal judge recently dismissed Justice Department subpoenas in the Powell case, determining their purpose was “to harass and pressure Powell to resign” and clear the way for a new chair. A prosecutor acknowledged in closed court proceedings that no evidence of criminal activity had been found.
Pirro indicated Friday on social media that she would “not hesitate to restart a criminal investigation should the facts warrant doing so.”
Trump originally appointed Powell as Fed chair in 2017 and has consistently pressured the central bank to reduce short-term interest rates. Even after a new chair takes office, Powell could remain on the Fed’s board of governors until his term expires in January 2028, though he hasn’t announced his intentions.
Warsh, a financier and former Fed board member, received Trump’s nomination in January.
