Sen. Thom Tillis Agrees to Move Forward With Kevin Warsh’s Federal Reserve Nomination
Why It Matters
The Federal Reserve chair holds one of the most consequential economic positions in the world, setting interest rate policy that affects borrowing costs, inflation, and financial markets for Americans and economies globally. With incumbent Chair Jerome Powell’s term expiring on May 15, the confirmation of a successor has taken on urgent importance for financial stability.
The path to confirming Kevin Warsh as the next Fed chair cleared a significant obstacle Sunday when a key Republican holdout announced he would no longer block the nomination from advancing.
What Happened
Sen. Thom Tillis, a Republican from North Carolina who sits on the Senate Banking Committee — the panel responsible for approving Federal Reserve nominees — announced Sunday that he is prepared to support Kevin Warsh’s confirmation as the next Fed chair.
“I am prepared to move on with the confirmation of Mr. Warsh. I think he’s going to be a great Fed Chair,” Tillis said during an appearance on NBC’s Meet the Press.
Tillis had previously placed a hold on Warsh’s nomination, citing a Justice Department probe into outgoing Fed Chair Jerome Powell. That probe was dropped on Friday, removing the obstacle Tillis said prompted his earlier objection.
The DOJ investigation had been launched following months of public pressure from President Donald Trump, who had complained repeatedly that Powell was too slow to lower interest rates and alleged impropriety related to a multibillion-dollar renovation project at the Fed’s Washington, D.C., headquarters. Trump had also openly signaled his desire to remove Powell from the position before his term’s end.
By the Numbers
- May 15: The date Jerome Powell’s term as Fed chair expires
- 1: The number of Senate Banking Committee Republicans — Tillis — who had been blocking the Warsh nomination from advancing
- Multibillion dollars: The scale of the Fed headquarters renovation project that drew Trump’s scrutiny of Powell
- 2: The number of days between the DOJ probe being dropped (Friday) and Tillis announcing his reversal (Sunday)
Fed Independence at the Center of the Debate
Tillis was unsparing in his criticism of the now-dropped DOJ investigation, calling it “a serious threat” to the Federal Reserve’s institutional independence. He warned that allowing such a probe to proceed could have had “devastating consequences for our financial systems and the markets worldwide.”
The senator suggested the investigation may have been an attempt to pressure Powell into resigning early, stating he believed “prosecutors in DC thought this was going to be a lever to have Mr. Powell leave early.” Tillis added that he had received assurances any appeal would not be used to reopen the case.
Warsh himself faced pointed questions during his Tuesday committee appearance about whether the Fed would maintain independence from the White House under his leadership. Sen. Elizabeth Warren, the leading Democrat on the Banking Committee, challenged Warsh to name one aspect of President Trump’s economic agenda with which he disagreed — a question Warsh answered with the quip that his disagreement was that he “was out of central casting.”
President Trump, for his part, has made clear he expects Warsh to cut interest rates and even joked that he would sue Warsh if he failed to do so after being confirmed. Tillis acknowledged Trump’s push to address inflation and affordability concerns, saying “we’ve got to deal with the affordability problem,” while adding that it must be done “by the rules.” He expressed confidence that Warsh would act independently, noting Trump may find himself “annoyed once or twice.”
The debate over Fed independence comes as Senate Republicans have been working to advance other major legislative priorities, including a sweeping immigration funding package — underscoring the packed legislative and confirmation calendar facing Congress in the weeks ahead.
What’s Next
With Tillis’s opposition removed, the Senate Banking Committee is now positioned to advance Warsh’s nomination to the full Senate for a confirmation vote. Powell’s term expires May 15, adding time pressure to the process.
Warsh will need to continue addressing concerns about Fed independence from both Republican and Democratic senators. Whether the administration maintains its hands-off posture toward the central bank once Warsh is confirmed — as financial markets and international partners are closely watching — remains an open question as the Trump administration navigates a packed and turbulent spring agenda.
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