Tillis Warsh – Sen. Thom Tillis says he’ll support Kevin Warsh’s Fed chair nomination after the Justice Department ends its Powell probe.
Washington — Sen. Thom Tillis says he is ready to move forward with Kevin Warsh’s nomination to chair the Federal Reserve, effectively ending his recent blockade on the central bank’s leadership.
Tillis. a North Carolina Republican on the Senate Banking Committee. tied his support to a single political and legal line: the status of the Justice Department’s investigation into current Fed Chair Jerome Powell and the fallout from the Fed’s $2.5 billion headquarters renovation.. In recent comments. Tillis said he received assurances that the investigation has been closed and that it would only be reopened if the Fed’s inspector general made a criminal referral.
Tillis ends blockade after DOJ assurance
Tillis made the case publicly in an appearance on NBC’s “Meet the Press,” and followed up with a statement posted to X. He framed the shift as a return to the Fed’s core job rather than a decision shaped by ongoing legal uncertainty.
“The U.S.. Attorney’s Office criminal investigation into Chair Powell was a serious threat to the Fed’s independence. ” Tillis wrote. adding that the probe needed to end before he would support Warsh’s confirmation.. He also said the inspector general’s review is a “necessary and appropriate measure. ” signaling he wants the renovation concerns handled through oversight rather than criminal scrutiny.
For Tillis, the pivot carries immediate procedural consequences.. The Senate Banking Committee is set to convene Wednesday to vote on Warsh’s nomination. and those committee dynamics matter: there are 13 Republicans and 11 Democrats on the panel.. In a chamber where party unity can determine whether a nomination advances smoothly. Tillis’ reversal reduces one major source of intra-party friction.
What changed on the Powell investigation
The immediate trigger for Tillis’ change is the Justice Department’s move to end its probe.. The announcement followed Powell’s earlier disclosures that the Fed had received grand-jury subpoenas connected to the renovation project.. Those subpoenas became part of a broader fight over process and pressure—both over whether the inquiry was appropriate and whether it could interfere with the Fed’s independence.
A U.S. district judge blocked the subpoenas in March, ruling they were tied to an effort to pressure Powell into changing course on interest-rate policy or stepping aside. The Justice Department, through U.S. Attorney Jeanine Pirro, has said it plans to appeal that decision.
Tillis said Sunday that the assurances he received were aimed at the judge’s rationale for quashing the subpoenas. not a renewed attempt to restart the underlying investigation.. That distinction is consequential.. It suggests Tillis is treating the appeal as a legal exercise about subpoenas. not as a backdoor to continue investigating Powell.
Warsh’s confirmation enters a narrower lane
Warsh’s nomination, announced by President Trump in January, is on a clock.. Powell’s term ends May 15. which compresses the window for Senate action and increases the pressure for the committee to clear the nomination with minimal delay.. Warsh appeared before the Banking Committee last week. where Tillis reiterated his earlier position: support the nominee. but do not vote to confirm until the Justice Department moved on from the probe.
Tillis’ change does not remove all controversy around the Fed’s renovation, though.. The issue is bigger than one chair or one committee vote.. The renovation involves two buildings and was first approved in 2017. with the project’s estimated cost climbing from $1.9 billion to nearly $2.5 billion.. The Fed attributes the increase to factors such as rising costs for materials, equipment, and labor.
That cost growth has become a political flashpoint because it intersects with the Fed’s credibility.. When a central bank spends billions on its own infrastructure. questions about governance and oversight are likely to follow—especially in a period where interest-rate decisions already strain relations between politicians and the institution.
Oversight continues even as criminal probe ends
Even with the Justice Department probe ending. the inspector general’s review remains central to how the renovation story is expected to close in public.. The inspector general’s office. led by Michael Horowitz. has conducted audits twice already and is working to finish its latest review.. Powell told senators last year that he asked for additional scrutiny of the ongoing overhaul of the Fed’s headquarters.
Why this matters beyond one nomination
The Tillis shift is more than a procedural update for committee members.. It reflects a recurring tension in U.S.. governance: how elected officials respond when an independent institution becomes entangled in a legal dispute—especially one touching monetary policy credibility.. Tillis’ original blockade highlighted the concern that criminal investigations could function as leverage against policy decisions. not simply as a response to wrongdoing.
With the probe reportedly closed. the question becomes whether the remaining oversight mechanisms are enough to satisfy lawmakers who want accountability without compromising the Fed’s independence.. If the inspector general’s review concludes without a criminal referral. it could strengthen the argument that governance issues. if any. should be handled through auditing and administrative action rather than prosecution.
What comes next on Wednesday
Wednesday’s committee vote will test how quickly the Senate can move once one major hold is lifted.. If Warsh advances. the nomination would still face the full Senate and the broader political debate over who should lead the Fed at a moment when inflation. interest-rate strategy. and economic growth remain politically charged.
For Tillis. the messaging now shifts from stopping the nomination to moving past a dispute he described as distracting from the Fed’s mission.. For the White House, it’s a step toward locking in a successor before the May deadline.. And for the Fed itself. the path forward is likely to remain the same: continue to operate as an independent institution while subject to oversight designed to reassure Congress and the public that accountability can exist without becoming political pressure.