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Tillis Backs Warsh for Fed Chair After Prosecutors Drop Powell Probe

The end of the Powell probe clears a path for a leadership change at the central bank.

Overview

  • Sen. Thom Tillis of North Carolina, who disclosed his position Sunday, said he will vote to confirm Kevin Warsh to lead the Federal Reserve.
  • Federal prosecutors ended their criminal investigation into current chair Jerome Powell on Friday and sent the renovation spending issue to an internal Fed watchdog.
  • Tillis said the now-closed case had threatened the Fed’s independence, so he withheld support until prosecutors stood down.
  • Warsh, nominated by President Trump, still needs Senate approval before Powell’s term ends on May 15.
  • Trump has long criticized Powell for resisting faster rate cuts, and Focus reported Warsh has recently argued for a stricter focus on inflation if he is confirmed.