Sen. Thom Tillis said Sunday he will no longer block the confirmation of Kevin Warsh to lead the Federal Reserve, clearing a path for the nomination to move forward.
The Republican lawmaker had refused to back any Federal Reserve nominees while the Justice Department investigated current Chair Jerome Powell over the central bank’s costly headquarters renovation in Washington. That stance shifted after U.S. Attorney Jeanine Pirro announced Friday that the probe had been dropped.
Speaking on NBC’s “Meet the Press,” Tillis said he received firm assurances that the investigation is “completely and fully ended” and would only resume if the Fed’s inspector general uncovers evidence warranting criminal action. “I am prepared to move on with the confirmation of Mr. Warsh,” he said. “I think he’s going to be a great Fed chair.”
In a statement, Tillis emphasized that ending the inquiry removes a threat to the Fed’s independence, adding that it is time for the central bank to refocus on its core responsibilities. He also voiced support for the ongoing inspector general review, calling it an appropriate step.
The Justice Department’s investigation had centered on a long-running renovation project at the Fed’s headquarters, whose cost rose from about $1.9 billion to nearly $2.5 billion due to higher expenses for materials, labor, and equipment. Powell previously disclosed that grand jury subpoenas were issued as part of the probe, but a federal judge later blocked them, citing a lack of evidence and concerns they were being used to pressure the Fed on interest rate decisions.
Although Pirro indicated plans to appeal that ruling, Tillis said he was assured any appeal would focus strictly on legal questions—not reopening the investigation.
The Fed’s inspector general, led by Michael Horowitz, is continuing a review of the renovation project and has promised a public report for Congress.
Tillis’ decision is expected to accelerate Warsh’s confirmation. The Senate Banking Committee, where Republicans hold a narrow majority, is preparing to vote on the nomination this week. Warsh, who previously served as a Fed governor, has broad Republican backing and was selected earlier this year by President Donald Trump.
Powell’s term as chair is set to end May 15, though he could remain on the board as a governor. In the meantime, the Fed continues to weigh economic pressures, including global tensions and rising energy costs, as it prepares for its next policy meeting.
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