Sen. Thom Tillis said Sunday he will support the nomination of Kevin Warsh to serve as the next chair of the Federal Reserve, ending a months-long blockade tied to a now-closed Justice Department probe involving current Fed Chair Jerome Powell.
Tillis, a member of the Senate Banking Committee, had vowed earlier this year to block any Federal Reserve nominee until the investigation into Powell was resolved. Speaking in a televised interview, he said the Department of Justice confirmed the inquiry was “completely and fully ended,” and that a pending legal appeal would not be used to reopen it.
The investigation stemmed from subpoenas issued by U.S. Attorney Jeanine Pirro related to cost overruns in the Federal Reserve’s headquarters renovation project, which increased from an estimated $1.9 billion to approximately $2.5 billion. Powell had argued the probe was being used to exert political pressure on monetary policy decisions.
In March, U.S. District Judge James Boasberg dismissed the subpoenas, citing a lack of evidence of fraud and concluding they were improperly motivated. The court declined to revisit that ruling in April, though the Justice Department initially filed an appeal.
On Friday, Pirro announced the probe would be closed, while referring the matter to the Federal Reserve’s inspector general for further review and leaving open the possibility of renewed action if new evidence emerges.
Tillis said his primary concern had been the potential use of federal prosecutors to pressure Powell to step down before the end of his term, which is set to expire May 15. With the investigation concluded, he said he is prepared to move forward with Warsh’s confirmation.
“I think he will be a great Fed chair,” Tillis said, adding that he expects Warsh to operate independently, even as President Donald Trump has publicly called for lower interest rates.
Tillis noted that decisions within the Federal Reserve are made collectively by the Federal Open Market Committee, emphasizing that any policy direction will require consensus among its voting members.
The confirmation process is expected to proceed in the Senate as lawmakers evaluate Warsh’s nomination and the future direction of U.S. monetary policy.
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