finance
Tillis Ends Hold on Warsh's Fed Chair Nomination After DOJ Closes Powell Investigation
Republican Senator Thom Tillis announced support for Kevin Warsh's nomination as Federal Reserve chair following the Justice Department's closure of its investigation into current Chair Jerome Powell. The move clears a path for a Senate Banking Committee vote on Wednesday. Powell's term expires May 15, amid ongoing questions about his potential departure from the Fed board.
Apr 22, 12:05 AM·3m read23 sources
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Republican Senator Thom Tillis of North Carolina stated on Sunday that he would no longer block the confirmation of Kevin Warsh as Federal Reserve chair, removing a significant obstacle for President Trump's nominee. Tillis announced his decision in a statement and during an appearance on NBC's Meet The Press, citing the Justice Department's recent closure of its criminal investigation into current Fed Chair Jerome Powell.
The department announced last week that it was dropping the probe, which focused on cost overruns in a multi-billion dollar Fed building renovation project, and directing the Fed's inspector general to handle further review.
U.S. Attorney's Office criminal investigation into Chair Powell was a serious threat to the Fed's independence, and it needed to end before I could support Kevin Warsh's confirmation," Tillis said in his Sunday statement. He added that he had received assurances from the Justice Department that any appeal of a judge's ruling to quash related subpoenas would address legal principles only, not aim to revive the investigation.
The Senate Banking Committee plans to vote on advancing Warsh's nomination on Wednesday. With Tillis's support, the nomination is expected to proceed along party lines to a full Senate vote. Warsh, a former Fed governor, appeared before the committee on April 21.
The Justice Department stated on April 24 that it was closing the investigation and referring the cost overruns matter to the Fed's inspector general. Only a criminal referral from the inspector general would prompt reopening the probe. Tillis reiterated his position in a social media post on April 26, welcoming the end of the criminal probe announced in January.
He described the investigation as a threat to the central bank's independence. "I take the Department of Justice at its word: the investigation is closed, and any appeal of Judge Boasberg’s ruling will be with respect to legal principles and not for the purpose of reissuing subpoenas," Tillis said on April 26.
