Senator Tillis Ends Block on Warsh’s Fed Chair Nomination After DOJ Drops Powell Probe

Senator Thom Tillis (R-N.C.) announced on Sunday that he will no longer block Kevin Warsh’s confirmation as Federal Reserve chair, removing a critical obstacle for President Trump’s nominee to lead the central bank.

Why it matters: The Department of Justice (DOJ) revealed last week that it had dropped its investigation into current Fed Chair Jerome Powell, fulfilling Tillis’ key condition for supporting Warsh’s nomination.

What they're saying:

"I have been clear from the start: the 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 made the statement in a Sunday release. While the probe into Powell has concluded, the DOJ is permitting the Fed’s watchdog to investigate cost "overruns" tied to the central bank’s multi-billion-dollar building renovation project.

On NBC’s Meet the Press, Tillis said he had been "assured" by the DOJ that it might appeal a judge’s ruling to quash Fed subpoenas, though any such appeal would hinge on legal principles rather than reopening the investigation.

"With these assurances, I look forward to supporting Kevin Warsh's confirmation. He is an outstanding nominee, and it is time for the Federal Reserve to move beyond this distraction and return its full attention to its mission."

What to watch: With Tillis’ backing, Warsh’s nomination is expected to advance along party lines out of the Senate Banking Committee to a full Senate vote. The timeline is tight: Powell’s term as Fed chair expires on May 15, leaving less than three weeks for Warsh to be confirmed and sworn in as leader of one of the world’s most influential economic institutions. The committee is scheduled to vote on advancing Warsh’s nomination on Wednesday.

The intrigue: The DOJ’s decision to close the probe may or may not meet the standard Powell set for leaving the Fed board—a question that could shape his next steps. Powell could remain on the Fed board through 2028, when his term as a governor expires. He previously stated at a press conference last month:

"I have no intention of leaving the Board until the investigation is well and truly over, with transparency and finality."

Tillis added on Meet the Press:

"Mr. Powell will have to make his own decisions at some point in the future about when and if he leaves the board. I suspect Mr. Powell wants to see what happens with the appeal and to make sure that it is fully settled after the appeal. It could be a lengthy process. Hopefully not."