Senator Thom Tillis of North Carolina announced he is prepared to move forward with Kevin Warsh’s nomination to chair the Federal Reserve’s Board of Governors, ending his hold on all Fed nominations. Tillis, a Republican member of the Senate Banking Committee, had previously withheld support due to an ongoing Justice Department investigation into current Fed Chair Jerome Powell.
Justice Department U.S. Attorney Jeanine Pirro announced last Friday that her office was closing the criminal probe related to the Federal Reserve’s $2.5 billion renovation of its Washington, D.C., headquarters. After receiving assurances from the Justice Department that the investigation into Powell had concluded and would only restart if the Fed’s inspector general made a criminal referral, Tillis declared his readiness to proceed with Warsh’s confirmation.
“I am prepared to move on with the confirmation of Mr. Warsh,” Tillis said in an interview on NBC’s “Meet the Press.” “I think he’s going to be a great Fed chair.”
On social media, Tillis emphasized that the closure of the criminal investigation was necessary for the Fed to focus on its core mission. He welcomed the ongoing inspector general’s investigation into the renovation project, calling it an appropriate oversight measure and expressing confidence it would be thorough and professional.
Nomination and Investigation Background
Kevin Warsh was nominated by former President Donald Trump in January to replace Jerome Powell, whose term as Fed chair ends on May 15. Warsh appeared before the Senate Banking Committee last week and received Tillis’s support during his hearing, although Tillis had withheld his confirmation vote pending the Justice Department’s closure of its probe.
The Justice Department investigation stemmed from grand-jury subpoenas related to the Fed’s multi-year headquarters renovation project, which expanded in cost from an estimated $1.9 billion to nearly $2.5 billion. The renovation, approved in 2017 and scheduled for completion next year, has faced scrutiny over rising costs of materials, equipment, and labor. The Fed funds the project through its own resources.
Fed Chair Powell had disclosed the subpoenas earlier this year, and a federal judge blocked them in March, ruling the probe appeared politically motivated—purportedly using legal pressure to influence Powell’s monetary policy decisions, including interest rate votes. Pirro has indicated plans to appeal that ruling.
Why it matters
The conclusion of the Justice Department’s criminal investigation removes a significant obstacle to confirming Kevin Warsh as the next Fed chair. The Federal Reserve’s leadership transition is critical amid ongoing economic challenges, and ending this legal distraction allows the central bank to concentrate on its policy responsibilities. Moreover, Tillis’s support increases Warsh’s chances of confirmation in a committee divided along partisan lines.
The inspector general’s continued review ensures oversight of the renovation’s expanded budget and contracting processes, underscoring efforts to maintain accountability for the Fed’s internal projects.
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Sources
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