Sen. Thom Tillis (R-N.C.) announced Sunday that he will no longer block Kevin Warsh's confirmation as Federal Reserve chair, removing a major obstacle for President Trump's nominee. Tillis had previously insisted that the Department of Justice (DOJ) drop its investigation into current Fed Chair Jerome Powell before he would support Warsh. The DOJ confirmed last week that it had ended its probe, satisfying Tillis's condition.
\\"I have been clear from the start: the U.S. Attorney's Office criminal investigation into Chair Powell was a serious threat to the Fed's independence, and it needed to end before I could support Kevin Warsh's confirmation,\\" Tillis said in a statement.
Despite the conclusion of the Powell investigation, the DOJ has allowed the Fed's watchdog to continue examining cost overruns related to a multi-billion dollar building renovation project. Tillis noted on NBC's Meet the Press that he had been \\"assured\\" the DOJ might appeal a judge's ruling to quash Fed subpoenas, though this would be based on legal principles rather than reopening the investigation.
What’s Next?
With Tillis's support, Warsh's nomination is expected to advance through the Senate Banking Committee on Wednesday and proceed to a full Senate vote. The timing is critical as Powell’s term expires on May 15, leaving less than three weeks for Warsh to be confirmed and assume leadership of one of the most influential economic institutions globally.
Powell’s Future Questions Remain
The DOJ’s decision may or may not meet Powell’s criteria for leaving the Fed board. Powell had previously stated he would not depart until the investigation was \\"well and truly over, with transparency and finality.\\" While his term as chair expires soon, Powell could remain on the Fed board through 2028, pending his decision on the probe’s conclusion.
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