Fed chair pick hits Senate roadblock over Powell investigation

Republican Senator Thom Tillis said Friday he will not back President Donald Trump’s nomination of Kevin Warsh as Federal Reserve chair.

The reason? Tillis wants the Justice Department to finish its investigation into current Fed Chair Jerome Powell first. No resolution, no support. Tillis made it clear in a public statement that nothing will change his mind until that probe is “fully and transparently” handled.

Tillis, who sits on the Senate Banking, Housing, and Urban Affairs Committee, is retiring this year. The committee has 13 Republicans and 11 Democrats.

If even one Republican says no, like Tillis just did, Kevin’s nomination hits a wall. No committee vote, no recommendation to the full Senate. That’s enough to stop it cold.

Tillis says investigation must end before vote on Fed nominee

Tillis warned earlier this month that he would block every Fed nomination until the Powell case is closed. He stuck to that line in Friday’s post on X. He wrote, “Protecting the independence of the Federal Reserve from political interference or legal intimidation is non-negotiable.”

The Senator called out the DOJ directly, saying they’re going after Powell for testimony no one in their right mind would consider criminal.

Powell confirmed that the DOJ is investigating him. Officially, it’s about his statements to Congress during a hearing on the Fed’s billion-dollar headquarters renovation. But Powell says the real reason is that he refused to cut interest rates as fast and as deep as Trump wanted. And he says other board members who agreed with him are also feeling the heat.

Tillis is buying that explanation. He said, “The Department of Justice continues to pursue a criminal investigation into Chairman Jerome Powell based on committee testimony that no reasonable person could construe as possessing criminal intent.”

Then he added, “I will oppose the confirmation of any Federal Reserve nominee, including for the position of Chairman, until the DOJ’s inquiry into Chairman Powell is fully and transparently resolved.”

That includes Kevin Warsh. Even though Tillis said Kevin is qualified and knows monetary policy, that’s not enough. The issue for Tillis isn’t credentials. It’s timing. It’s about standing up for Fed independence, which he says is being threatened by legal pressure.

Senator Elizabeth Warren, the top Democrat on the committee, agrees with the block. She said, “No Republican purporting to care about Fed independence should agree to move forward with this nomination” of Kevin. She pointed at Trump’s own words: “Donald Trump said anybody who disagrees with him will never be Fed Chairman.”

Warren also went after Kevin for his role during the 2008 crisis. She said, “Former Fed Governor Kevin Warsh – who cared more about helping Wall Street after the 2008 crash than millions of unemployed Americans – has apparently passed the loyalty test.” Then she tied it all together, saying this nomination is just another part of Trump’s effort to control the Fed, using the DOJ to target Powell and Fed Governor Lisa Cook.

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