Republican U.S. Senator Thom Tillis announced his support for Kevin Warsh's nomination as Federal Reserve chairman following the conclusion of a Department of Justice investigation into current Fed chief Jerome Powell [1]. Tillis had previously stated he would oppose Warsh's confirmation unless the probe into Powell was halted, making his support the last significant hurdle before a confirmation vote could proceed ahead of Powell's term ending on May 15 [1].
The investigation focused on Powell's management of renovations at the Federal Reserve headquarters in Washington, with the project's budget rising to $2.5 billion from an initial $1.9 billion [1]. Powell disclosed the investigation in early January, describing it as a 'threat' from President Donald Trump and his administration, allegedly aimed at pressuring the Fed to lower its key interest rate [1].
On Friday, Jeanine Pirro, U.S. attorney for the District of Columbia, announced the end of the criminal investigation, transferring the matter to the Fed's inspector general, Michael Horowitz, for an administrative, non-criminal review. Pirro noted that the criminal probe could be reopened if warranted by the inspector general's findings [1]. Tillis stated he had received assurances that the criminal case would only be revisited if justified by new evidence [1].
Despite the investigation's closure, President Trump refused to acknowledge its end, asserting his 'obligation to find out' the reasons behind the increased renovation costs [1]. Senator Tillis expressed confidence in Warsh, calling him an 'outstanding nominee' and urging the Federal Reserve to refocus on its core mission [1].
CONCLUSION
Senator Tillis's decision to support Kevin Warsh's nomination removes a key obstacle to the confirmation process, following the end of the criminal investigation into Jerome Powell. The Federal Reserve is now positioned to move forward with its leadership transition, though scrutiny over renovation costs and political tensions remain.