Sen. Thom Tillis says he is prepared to move forward with confirming Warsh as Fed chair after DOJ drops probe on Powell

(SeaPRwire) –   On Sunday, the Republican senator who had been holding up the confirmation of President Donald Trump’s choice for Federal Reserve chair stated he would cease his resistance following the Department of Justice’s decision to close its inquiry into the incumbent central bank leader.

This declaration from North Carolina Sen. Thom Tillis clears a significant obstacle for Trump’s plan to appoint Kevin Warsh, a former top Fed official, to succeed Jerome Powell, who has faced prolonged pressure from the White House to reduce interest rates. Tillis’ resistance had been sufficient to halt the nomination process within the Republican-led Senate Banking Committee, particularly as Powell’s term is set to conclude on May 15.

“I am ready to proceed with confirming Mr. Warsh. I believe he will make an excellent Fed chair,” Tillis stated during an interview on NBC’s “Meet the Press.” This came two days after the U.S. attorney for the District of Columbia announced that her office had concluded its examination of the Fed’s costly building renovations. Powell’s previous summer testimony to Congress regarding the project had also been part of that review.

The central bank’s internal watchdog is currently examining a project whose cost has ballooned to $2.5 billion from an earlier estimate of $1.9 billion. The Republican president has criticized the project for exceeding its budget. Powell had requested the inspector general’s review back in July.

“I do not believe any criminal wrongdoing occurred. We might discover some foolishness regarding decisions made by project managers that shouldn’t have been made—perhaps. But that does not warrant criminal charges. That was my initial concern, as I sensed that prosecutors in D.C. viewed this as a tool to force Mr. Powell’s early resignation,” he remarked.

Tillis, who previously angered Trump in June by voting against a major tax and spending bill due to Medicaid cuts and recently stated he would not run for reelection in 2026, noted that he received guarantees from the Justice Department. He cited assurances that “the case is entirely and fully resolved… and that an investigation would only be reopened via a criminal referral from one of the most highly respected inspector generals.”

On Saturday, the committee announced its intention to hold a vote on Warsh’s nomination this coming Wednesday. In response, ranking Democrat Senator Elizabeth Warren of Massachusetts issued a statement arguing that “no Republican who professes to value Fed independence should back the advancement of Kevin Warsh, who demonstrated during his hearing that he is merely President Trump’s puppet.”

During a hearing the previous week, Warsh assured senators that he never committed the White House to lowering interest rates and vowed to act as “an independent actor” if confirmed. Just hours earlier, Trump had told CNBC in an interview that he would be disappointed if Warsh failed to slash rates immediately. “I would,” the president confirmed.

No longer bound by the constraints of a political campaign, Tillis has vigorously defended Powell. He condemned the inquiry led by U.S. Attorney Jeanine Pirro, a staunch Trump ally, labeling it a “vindictive prosecution” and warning that it jeopardized the Fed’s historical independence from political interference. In his NBC interview, Tillis explained that the Justice Department provided the necessary assurances that “they were not utilizing the DOJ as a weapon to intimidate the Fed. Consequently, this clears the way for Mr. Warsh’s confirmation to proceed.”

When reporters asked Trump on Saturday if the conclusion of the DOJ investigation meant smooth sailing for Warsh, he replied, “I assume it’s smooth.” He added that his nominee “is going to be fantastic.” The president also expressed his continued desire to understand “how a building of that size can cost… whatever it ends up costing.”

During a July visit to the Fed headquarters, Trump declared in front of TV cameras that the renovation costs would reach $3.1 billion. Powell, who was standing beside him, reviewed a document handed to him by the president and stated that Trump’s latest estimate was inaccurate.

This inquiry was one of several launched by the Justice Department targeting individuals Trump views as opponents. For months, it had made little progress as prosecutors found it difficult to establish grounds for suspecting criminal activity. Similar departmental attempts to prosecute Trump’s adversaries, such as New York Attorney General Letitia James, a Democrat, and ex-FBI Director James Comey, have similarly fallen flat.

The prior month, a federal judge invalidated Justice Department subpoenas directed at the Fed as part of the probe, characterizing them as tools intended “to harass and pressure Powell to resign” and facilitate the appointment of a new chair. During a closed-door hearing, a prosecutor on the Powell case admitted that the government had uncovered no evidence of criminal behavior.

In a post on X on Friday, Pirro stated that she “will not hesitate to reopen a criminal investigation if the facts justify such action.”

Trump selected Powell to lead the Fed in 2017 during his first term and has spent years trying to coerce the central bank into reducing short-term interest rates.

Even if a new chair is installed, Powell has the option to remain on the board to complete his term as a governor, which extends through January 2028. He has informed the press that he has not yet made a decision on this matter.

Warsh, a financier and previous member of the Fed’s Board of Governors, was nominated by Trump in January.