Senator Tillis Backs Kevin Warsh for Fed After DOJ Ends Jerome Powell Investigation
The path forward for Trump's Federal Reserve pick appears to have cleared after Senator Thom Tillis announced he would support Kevin Warsh's nomination, removing a significant obstacle that had threatened to derail the confirmation process. Tillis had previously blocked the vote, citing concerns that a Department of Justice criminal investigation into Fed Chair Jerome Powell posed a threat to the central bank's independence.
The senator's decision came directly after the DOJ ended its investigation into Powell last week. U.S. Attorney Jeanine Pirro, a longtime Trump ally, announced the suspension of the probe, which had examined whether Powell misled Congress regarding $2.5 billion in renovations at the Federal Reserve's Washington headquarters. A federal judge had previously blocked two subpoenas from Pirro's office, finding they appeared designed to pressure Powell into either cutting interest rates or resigning—actions the court deemed improper attempts to undermine the Fed's autonomy from political influence.
Tillis had emerged as an unlikely holdout against the Trump administration's agenda, using his position on the Banking Committee to leverage the investigation's conclusion as a condition for moving forward with Warsh's confirmation. At Warsh's Senate hearing this week, Tillis indicated he needed concrete action on the investigation before backing the nomination, effectively giving him leverage over the process. The senator praised Warsh's qualifications, telling him at the hearing: "You have extraordinary credentials. They're impeccable." With Tillis now backing the vote, the path to confirmation for Trump's preferred candidate has significantly strengthened.
The broader context of these developments reflects the ongoing tension between the Trump administration and the Federal Reserve over monetary policy independence. Powell's term as chair expires on May 15, though his seat on the Fed board extends through January 2028. The threat of the investigation's potential revival—the DOJ did not permanently close the case—may influence Powell's decision about whether to remain in his current role beyond his chairmanship, an outcome that could reshape the central bank's leadership during a critical period for U.S. economic policy.