Senator Thom Tillis, a Republican from North Carolina, has explicitly tied his support for President Trump's nominee to chair the Federal Reserve to the termination of a Justice Department investigation into the current central bank leader. Tillis stated he will not vote to confirm Kevin Warsh until federal prosecutors drop their probe into Fed Chair Jerome Powell.
A Key Committee Holdout
As a member of the Senate Banking Committee, Tillis holds considerable sway over whether Warsh's nomination advances to the full Senate. His declared opposition creates a significant hurdle for the White House's effort to install a new chief at the nation's central bank. The senator made his position clear during Warsh's confirmation hearing before the committee on Tuesday.
"You have extraordinary credentials. They're impeccable," Tillis told the nominee before adding, "The problem I have is where we are right now." He argued that the investigation into Powell, which centers on cost overruns from renovations at Federal Reserve facilities, largely "seems to be legitimate" and should not be an obstacle to the leadership transition.
Targeting the Prosecution
In pointed remarks, Tillis appeared to criticize U.S. Attorney for the District of Columbia Jeanine Pirro for initiating the probe. "The problem that I have here is that we had some U.S. attorney or assistant U.S. attorney thinking it would be cute to bring Chair Powell under an investigation just a few months before the position was going to be open," he said.
The senator suggested that without the investigation, the confirmation process for Warsh would be straightforward. "We'd be having this hearing. You'd be getting confirmed. Custom also suggests that the sitting chair, even though he has two years left on his term, would have exited," Tillis asserted, directly linking the probe to Powell's decision to remain in his post.
Powell, whose separate term as a Federal Reserve Board member extends to 2028, has stated he will not resign while under investigation. The legal landscape shifted last month when a federal judge blocked two Justice Department subpoenas in the case. Neither Pirro nor President Trump have signaled any intention to abandon the inquiry, setting the stage for a prolonged standoff.
This confrontation adds to the intense Senate scrutiny facing Warsh, whose nomination was already contentious. Democrats have raised separate concerns, including demands for a hearing delay over his opaque financial portfolio and ties to hedge fund manager Stanley Druckenmiller.
Tillis concluded his public remarks to Warsh with a direct proposition: "Let's get rid of this investigation so I can support your confirmation." His stance illustrates how internal Republican dynamics, not just partisan opposition, could threaten Trump's agenda. This intraparty challenge mirrors other tensions, such as the broader Senate GOP blockade complicating the President's bid to replace Powell.
The situation places the Justice Department in a difficult political position, caught between an ongoing investigation and a senator's explicit demand for its closure to facilitate a major presidential appointment. The outcome will significantly influence the leadership of the world's most powerful central bank during a period of economic uncertainty.
