Sen. Thom Tillis (R-N.C.) declared Sunday he will back Kevin Warsh's nomination to lead the Federal Reserve, following what he called “assurances” from the Justice Department that the criminal investigation into current Chair Jerome Powell and the central bank's D.C. renovation project is officially closed.
Tillis, a pivotal member of the Senate Banking Committee, had previously tied his support for Warsh to the resolution of that probe. He had publicly pressed the DOJ to wrap up the case last week, warning it threatened the Fed's independence. Now, with the investigation shuttered, the path to confirmation appears clearer.
“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 wrote on X. He welcomed the shift to an inspector general inquiry, calling it “necessary and appropriate.”
U.S. Attorney Jeanine Pirro announced Friday that the criminal investigation had concluded, with an inspector general probe into Powell and the Fed’s $2.5 billion renovation project taking its place. “The IG has the authority to hold the Federal Reserve accountable to American taxpayers,” Pirro said, promising a “comprehensive report in short order.”
Tillis emphasized he takes the DOJ at its word that any appeal of a judge's ruling blocking subpoenas against Powell would focus on legal principles, not reissuing subpoenas. U.S. District Judge James Boasberg had ruled the government “did not come close” to justifying the subpoenas. The senator noted that only a criminal referral from the inspector general could reopen the case.
“With these assurances, I look forward to supporting Kevin Warsh’s confirmation,” Tillis wrote. “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.”
The Senate Banking Committee is expected to advance Warsh's nomination this week, a key step toward a full floor vote. The development follows the DOJ's closure of the criminal probe into Powell, which had been a major sticking point for Tillis and other Republicans concerned about Fed independence.
Meanwhile, the controversy has drawn sharp partisan lines. Senator Elizabeth Warren has dismissed comparisons to Trump-era Fed criticism, labeling Warsh a “sock puppet” in a recent clash. Warsh himself has defended Fed autonomy as Senate debate over presidential influence intensifies. The confirmation battle is expected to test broader questions about the central bank's independence and accountability.
