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Tillis Blocks Warsh Fed Nomination as DOJ Pursues Powell Probe

The standoff spotlights pressure on the Fed's political independence.

Overview

  • Sen. Thom Tillis says he will withhold his Banking Committee vote unless prosecutors drop the investigation into Jerome Powell, blocking Kevin Warsh’s path forward.
  • Under the current numbers, his stance would likely split the committee and stop the nomination at the panel stage.
  • The Senate Banking Committee has set a confirmation hearing for April 21, and a full Senate vote can only happen if the panel advances the pick.
  • The Justice Department inquiry, led by DC U.S. Attorney Jeanine Pirro, focuses on cost overruns at the Fed’s headquarters and Powell’s testimony about the project.
  • Powell says he will serve as interim chair after May 15 if no successor is confirmed, and President Trump says he would fire him, raising the risk of a court fight.