finance
Sen. Tillis Ends Opposition to Warsh for Fed Chair After DOJ Closes Powell Probe
Republican Sen. Thom Tillis announced he will support confirming Kevin Warsh as Federal Reserve chair, clearing a key hurdle after the Justice Department closed its investigation into current chair Jerome Powell. The probe focused on cost overruns in Fed building renovations, which Trump has criticized. A Senate committee vote is set for Wednesday, with Powell's term ending May 15.
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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.
