Republican Senator Thom Tillis from North Carolina has raised significant concerns surrounding the nomination of Kevin Warsh as chairman of the Federal Reserve Board of Governors. In a recent interview, Tillis emphasized that Warsh needs to consider the implications of proceeding with his nomination in light of the ongoing investigation into current Fed Chairman Jerome Powell by the Justice Department.
Tillis stated that he has no intention of supporting any nominee to the Federal Reserve until the investigation into Powell is resolved. This includes Warsh, who was announced by former President Trump as his candidate to succeed Powell. The senator noted that once a nominee is officially put forward, that individual faces certain restrictions regarding their business activities, a notion that could complicate Warsh’s potential confirmation.
Despite acknowledging Warsh’s qualifications and expertise in monetary policy, Tillis expressed a firm stance against confirming any Fed nominee until the inquiry concludes. He reiterated the importance of protecting the independence of the Federal Reserve, categorizing it as a fundamental principle that must remain above political influence or intimidation.
In the interview, Tillis also criticized the U.S. Attorney’s Office in the District of Columbia, particularly under the leadership of Jeanine Pirro, for its handling of the investigation into Powell. Powell disclosed last month that the Fed had received grand jury subpoenas pertaining to his testimony before the Senate Banking Committee concerning a protracted project to renovate the Fed’s headquarters.
Tillis described the actions taken by the U.S. Attorney’s Office as potentially motivated by a desire to garner attention, suggesting that efforts to investigate Powell could have been a miscalibrated attempt to attract presidential notice rather than a meritorious legal pursuit. He accused the prosecutors of failing to consult adequately with higher authorities at the Department of Justice regarding their actions.
In her defense, Pirro clarified that her office reached out to the Fed multiple times to discuss cost overruns related to the renovation but felt compelled to escalate to legal measures when their inquiries were not addressed. She stated, “This office makes decisions based on the merits, nothing more and nothing less,” reinforcing her call for cooperation from Powell.
Several Republican lawmakers echoed Tillis’s sentiments regarding the investigation. Senator Tim Scott, who chairs the Banking Committee, remarked that while Powell may have exercised poor judgment during his testimony, he does not believe Powell committed a crime. Tillis stressed that the prosecutors should heed the opinions of the Republican senators who conveyed there was no criminal intent exhibited by Powell.
As the debate continues, Treasury Secretary Scott Bessent noted that there would likely be movement towards a confirmation hearing for Warsh. However, the final decision on whether to hold such a hearing lies with Scott, and Tillis made it clear that he stands firm on his opposition until the investigation’s resolution.
The political landscape surrounding the Federal Reserve remains tense, particularly as Trump has vocally criticized Powell’s leadership on key monetary policies. With Powell’s term as Chairman set to expire in May, the outcome of this nomination and ongoing investigations could have lasting implications for the Federal Reserve’s leadership and independence.
