Senator Thom Tillis Stops Opposing Federal Reserve Nominee Kevin Warsh After DOJ Probe Ends
Introduction
Senator Thom Tillis of North Carolina has announced that he will no longer oppose the appointment of Kevin Warsh as Chairman of the Federal Reserve. This decision comes after the Department of Justice ended its criminal investigation into the current chair, Jerome Powell.
Main Body
The political deadlock ended after U.S. Attorney Jeanine Pirro announced on Friday that her office would stop its investigation into Chair Jerome Powell. The probe focused on the rising costs of renovating the Federal Reserve's headquarters in Washington, D.C., which now costs about $2.5 billion, far exceeding the original 2020 estimate of $1.9 billion. Senator Tillis explained that his support for Mr. Warsh depended on removing what he called a threat to the central bank's independence. He added that the Department of Justice assured him the case is closed and will only be reopened if the Federal Reserve's Office of Inspector General finds new criminal evidence. This situation follows a period of high tension between the government and the Federal Reserve. President Donald Trump has frequently criticized Chair Powell for refusing to lower interest rates and for the high cost of the renovations. On the other hand, Chair Powell claimed that the administration's tariff policies caused inflation. Last month, Judge James Boasberg blocked the Department of Justice's requests for documents, stating there was very little evidence of criminal activity. He suggested that the investigation was actually intended to pressure Mr. Powell to resign or change monetary policy. Opinions on the nomination remain split. While Senator Tillis praised Mr. Warsh's experience, Senator Elizabeth Warren argued that he is not independent enough for the role. During his hearing, Mr. Warsh asserted that he would act independently and denied making any promises to the White House about cutting interest rates. However, President Trump told CNBC that he would be unhappy if the new chair did not lower rates immediately. Meanwhile, Senator Tillis, who will not run for reelection in 2026, had used his position on the Senate Banking Committee to delay the process. The committee is now scheduled to vote on Mr. Warsh this Wednesday.
Conclusion
The end of the Department of Justice investigation has removed the main obstacle to Kevin Warsh's confirmation. The Senate Banking Committee is expected to vote on his appointment this Wednesday, which could lead to a change in leadership by May 15.