Tillis backs Fed nominee Warsh after DOJ drops Powell probe, urges swift confirmation
WASHINGTON, DC: Sen Thom Tillis on Sunday announced he will support President Donald Trump’s nominee to lead the Federal Reserve, Kevin Warsh, clearing a key hurdle after weeks of delay tied to concerns over the central bank’s independence.
The decision marks a significant shift from Tillis, who had been blocking Warsh’s nomination from advancing in the Senate.
His opposition was linked to a Justice Department investigation into current Federal Reserve Chair Jerome Powell, a probe Tillis argued risked undermining the credibility and autonomy of the central bank.
Weeks-long standoff ends after Justice Department move
Tillis said his position changed following assurances from the Justice Department and its decision to drop the investigation into Powell.
The inquiry had largely focused on a renovation project at the Federal Reserve’s headquarters, raising political and institutional concerns in Washington.
“We worked a lot over the weekend to make sure that we were very clear that we have assurances from the DOJ that I needed to feel like they were not using the DOJ as a weapon to threaten the independence of the Fed,” Tillis said during an appearance on NBC News’ “Meet the Press.”
The Justice Department’s announcement on Friday that it was ending the probe appears to have resolved the impasse, paving the way for the nomination to move forward.
Tillis cites concerns over Fed autonomy, political pressure
Throughout the standoff, Tillis had framed his opposition not as a rejection of Warsh himself, but as a broader institutional concern. He warned that any perception of political interference in the Federal Reserve could damage market confidence and erode trust in one of the nation’s most critical economic institutions.
The Federal Reserve operates independently of the executive branch, a principle long viewed as essential to maintaining stability in monetary policy. Tillis indicated that his primary objective was to ensure that independence was not compromised by external pressure or legal actions perceived as politically motivated.
By securing what he described as adequate assurances from the Justice Department, Tillis said he now believes those concerns have been sufficiently addressed.
Warsh’s confirmation set to proceed
With Tillis lifting his hold, Kevin Warsh’s nomination is now expected to advance through the Senate confirmation process without further delay.
Warsh, a former Federal Reserve governor, is widely seen as a seasoned candidate with deep experience in financial markets and monetary policy.
His confirmation would come at a pivotal moment for the US economy, as policymakers continue to navigate inflation concerns, interest rate decisions and broader financial stability challenges.
Tillis said his decision would “allow Warsh to move on with his confirmation on time,” signalling that Republican resistance tied to the DOJ probe may now ease.
