Senator Tillis Ends Blockade, Paving Way for Warsh's Fed Confirmation

Senator Thom Tillis (R-N.C.) announced on Sunday his decision to support the confirmation of Kevin Warsh as the next Federal Reserve Chair, following the Justice Department's termination of its investigation into current Chair Jerome Powell. Tillis had previously withheld his support due to concerns over the investigation's impact on the Fed's independence.

"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." "So this will allow Mr. Warsh to move on with his confirmation on time."

The Justice Department's probe focused on cost overruns in the Federal Reserve's headquarters renovation project. U.S. Attorney for the District of Columbia Jeanine Pirro announced the closure of the investigation, indicating that the Fed's Inspector General would continue to review the matter. Pirro noted that her office would "not hesitate to restart a criminal investigation should the facts warrant doing so."

With the investigation concluded, the Senate Banking Committee is expected to advance Warsh's nomination to a full Senate vote on Tuesday. Warsh, a former Fed governor, has received widespread Republican support. 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 simultaneously. Legal filings suggest that Powell's counsel advised him to stay to defend the Federal Reserve's independence during the investigation.

The Federal Reserve declined to comment on the Justice Department's decision to drop the probe.