Senator Tillis Defends Fed Independence, Clears Path for Proven Conservative Warsh
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Senator Thom Tillis has responsibly ended his opposition to Kevin Warsh's nomination as Federal Reserve Chair after the Justice Department rightly closed its investigation into current Chair Jerome Powell. This decision allows a strong, market-oriented leader to take charge of the Fed.
Senator Thom Tillis (R-N.C.) announced Sunday that he will now support the confirmation of Kevin Warsh as the next Federal Reserve Chair, following the Justice Department's sensible decision to terminate its investigation into current Chair Jerome Powell. Tillis had previously withheld support out of a principled concern for the Fed's independence, refusing to let politicized investigations undermine the central bank.
"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 stated on NBC News' "Meet the Press." This careful approach demonstrates Tillis's commitment to protecting the integrity of America's financial system and ensuring that the Justice Department does not become a tool for partisan attacks.
The Justice Department's probe, which centered on cost overruns in the Federal Reserve's headquarters renovation project, was appropriately closed by U.S. Attorney for the District of Columbia Jeanine Pirro. She emphasized that the Fed's Inspector General would continue to review the matter, and her office would "not hesitate to restart a criminal investigation should the facts warrant doing so," ensuring accountability remains intact.
With this distraction removed, the Senate Banking Committee is expected to advance Warsh's nomination to a full Senate vote on Tuesday. Warsh, a former Fed governor with a strong record and widespread Republican support, is poised to bring much-needed fiscal discipline and pro-growth policies to the Federal Reserve. If confirmed, he will succeed Powell, whose term ends on May 15.
Powell has not indicated whether he will remain on the Fed's board as a governor after his term as chair concludes. Historically, Fed chairs have stepped down from both positions, but legal filings show Powell's counsel advised him to stay to defend the Fed's independence during the investigation—a sign of the challenges posed by politically motivated scrutiny.
The Federal Reserve declined to comment on the Justice Department's decision to drop the probe, as is appropriate for an institution that must remain above political fray.