Senator Thom Tillis (R-NC) announced Sunday that he will no longer block the confirmation of Kevin Warsh as Federal Reserve chair following the Department of Justice’s decision to close its investigation into current Fed Chair Jerome Powell. The move clears a significant hurdle for President Trump’s push to replace Powell with Warsh, a former Fed official.
DOJ Probe Closure Paves Way for Confirmation
The investigation centered on cost overruns in the Fed’s multibillion-dollar building renovation project, which Trump has repeatedly criticized. Powell had sought an internal review of the project after estimates ballooned from $1.9 billion to $2.5 billion. Tillis, who had previously stalled the nomination, stated he received assurances from the DOJ that the case was settled and no criminal wrongdoing was found.
"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," Tillis said.
Senate Banking Committee to Vote Wednesday
The Senate Banking Committee announced plans to vote on Warsh’s nomination Wednesday. Ranking Democrat Senator Elizabeth Warren criticized the move, accusing Republicans of undermining Fed independence. Warsh, during his nomination hearing, pledged to act independently despite Trump’s public pressure to lower interest rates.
Tillis emphasized the importance of preserving the Fed’s independence, calling the inquiry "vindictive" and suggesting it was politically motivated. With the DOJ probe concluded, Warsh’s confirmation is expected to proceed smoothly. Trump expressed confidence in his nominee, stating, "I imagine it’s smooth. He is going to be fantastic."