Sen. Tillis Ends Opposition to Warsh for Fed Chair After DOJ Closes Powell Probe

Republican Sen. Thom Tillis of North Carolina stated Sunday he is dropping his opposition to President Donald Trump's nominee for Federal Reserve chair, Kevin Warsh, following the Justice Department's decision to end its investigation of current chair Jerome Powell.

The announcement removes a significant obstacle in the GOP-controlled Senate Banking Committee, where Tillis had stalled the nomination. Powell's term as chair is scheduled to end on May 15.

The Justice Department closed its probe on Friday, centered on multibillion-dollar renovations at the Federal Reserve's headquarters. The project cost has risen to $2.5 billion from an earlier estimate of $1.9 billion. Powell requested an internal review by the Fed's inspector general in July.

Sources agree the investigation also examined Powell's congressional testimony last summer about the renovations. A federal judge last month quashed Justice Department subpoenas in the case, stating their purpose was to harass and pressure Powell to resign.

A prosecutor acknowledged in a closed-door hearing that no evidence of a crime was found. U.S. Attorney Jeanine Pirro, who led the inquiry, said Friday on X that she would restart a criminal investigation if facts warrant it.

Tillis told NBC's "Meet the Press" on Sunday that he received assurances from the Justice Department that the case is fully settled and any reopening would require a criminal referral from the inspector general. >"I am prepared to move on with the confirmation of Mr.

Warsh. " — Sen. Thom Tillis, May 3, 2026 (NBC News). Tillis had described the investigation as a "vindictive prosecution" that threatened the Fed's independence. He added that prosecutors viewed it as a lever to force Powell out early. The senator, who opposed Trump's tax and spending cuts bill in June over Medicaid reductions and announced he will not seek reelection in 2026, said the assurances addressed his concerns about the Justice Department being used as a weapon against Fed independence.

Trump nominated Warsh, a financier and former Fed board member, in January. Sen. Elizabeth Warren, the ranking Democrat on the committee, stated that no Republican concerned with Fed independence should support Warsh, whom she called "President Trump’s sock puppet" based on his nomination hearing.

At last week's hearing, Warsh told senators he never promised the White House rate cuts and pledged to act independently if confirmed. Hours before the hearing, Trump said in a CNBC interview he would be disappointed if Warsh did not immediately cut rates.

" — President Donald Trump, responding to whether he would be disappointed if Warsh did not cut rates immediately (Washington Times). " The president visited the Fed building in July, publicly stating costs would reach $3.1 billion, a figure Powell corrected on site as incorrect.

Trump appointed Powell as chair in 2017 during his first term and has long pressured the Fed to lower short-term interest rates. The investigation into Powell was part of broader Justice Department efforts targeting Trump's perceived adversaries, including New York state Attorney General Letitia James and former FBI Director James Comey, which have been unsuccessful.

Sources indicate the probe struggled to identify criminal conduct. Even if replaced as chair, Powell could remain on the Fed board until his governor term ends in January 2028, though he has not decided. Trump has criticized the renovation costs, questioning how the building could exceed initial estimates.

The Fed's internal watchdog continues scrutinizing the project.