Sen. Thom Tillis removed a significant roadblock to Kevin Warsh's confirmation as Federal Reserve chair on Sunday, announcing he would no longer oppose Trump's nominee now that the Justice Department has dropped its criminal investigation into current Fed leader Jerome Powell.
Tillis had made the closure of that DOJ probe his condition for backing Warsh. In a statement Sunday, the North Carolina Republican said the investigation into Powell "was a serious threat to the Fed's independence, and it needed to end before I could support Kevin Warsh's confirmation." With that requirement met, he declared himself ready to vote yes.
The move clears the way for Warsh to advance out of the Senate banking committee, where a vote is scheduled for Wednesday. From there, confirmation on the full Senate floor appears likely on party lines. The timeline is tight: Powell's current term as chair expires May 15, leaving fewer than three weeks for Warsh to be confirmed and sworn in.
One complication remains unresolved. While the criminal investigation into Powell has concluded, the Justice Department is permitting the Federal Reserve's internal watchdog to pursue a separate inquiry into cost overruns tied to the agency's multi-billion dollar building renovation project. On NBC's Meet The Press, Tillis said the DOJ had assured him it might appeal a judge's ruling that blocked certain Fed subpoenas, though he acknowledged such an appeal would rest on legal grounds rather than an attempt to revive the investigation itself.
The broader question now centers on whether Powell himself will depart. The Fed chair set a specific test last month for when he might step down: "I have no intention of leaving the Board until the investigation is well and truly over, with transparency and finality." Powell has the option to remain on the Fed's board as a governor until 2028, even if he leaves the chairman role.
Tillis suggested Powell may want to see how any appeal plays out before making his next move. "I suspect Mr. Powell wants to see what happens with the appeal and to make sure that it is fully settled after the appeal," Tillis said on the NBC program. "It could be a lengthy process."
Author James Rodriguez: "Tillis got his fig leaf on independence, but Powell's exit strategy remains his own call, and that timeline crunch is real."
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