Tillis Ready to Advance Warsh's Nomination for Fed Chair

Senator Thom Tillis of North Carolina announced his readiness to advance Kevin Warsh's nomination for chairman of the Federal Reserve's Board of Governors, effectively lifting his previous blockade on central bank nominations.

Previously, Tillis, a Republican member of the Senate Banking Committee, had pledged to withhold support for any Fed nominations while the Justice Department investigated current chairman Jerome Powell. However, U.S. Attorney Jeanine Pirro confirmed on Friday that the investigation into Powell and the Fed's $2.5 billion renovation project in Washington, D.C., has concluded.

During an interview on "Meet the Press," Tillis expressed confidence in the closure of the investigation, stating he received assurances from the Justice Department that it would only be reopened if the Fed's inspector general made a criminal referral regarding the renovation.

"I am prepared to move on with the confirmation of Mr. Warsh," he stated. "I think he's going to be a great Fed chair."

In a statement posted on X, Tillis emphasized the need for the Federal Reserve to refocus on its mission, free from distractions. "I have been clear from the start: the U.S. Attorney's Office criminal investigation into Chair Powell was a serious threat to the Fed's independence, and it needed to end before I could support Kevin Warsh's confirmation," he noted. He also welcomed the ongoing Inspector General's investigation, asserting confidence in its thoroughness.

Powell's term as Fed chairman is set to expire on May 15. In January, former President Trump announced Warsh as his nominee to lead the central bank's board. Warsh recently appeared before the Banking Committee, where Tillis reiterated his support but maintained that he would not vote for confirmation until the Justice Department concluded its investigation.

The Banking Committee is scheduled to meet on Wednesday to vote on Warsh's nomination, which has 13 Republicans and 11 Democrats.

In January, Powell disclosed that grand-jury subpoenas had been issued as part of the criminal investigation into the renovation project. However, in March, U.S. District Judge James Boasberg blocked these subpoenas, determining they were an attempt to pressure Powell regarding interest rate decisions.

Pirro has indicated plans to appeal this ruling. Tillis mentioned that the Justice Department assured him any appeal would focus solely on the judge's rationale for quashing the subpoenas and not serve as a means to revive the investigation.

Former President Trump has often expressed dissatisfaction with Powell's interest rate policies and previously suggested that issues surrounding the renovation could justify Powell's dismissal. The renovation project, which includes two buildings, was initially approved in 2017 and is expected to be completed next year. The project's cost has escalated from $1.9 billion to nearly $2.5 billion due to various factors such as increased material and labor costs. The Federal Reserve operates on a self-funding basis.

The Fed's inspector general's office, led by Michael Horowitz, has conducted audits of the renovation projects twice before. Powell informed the Senate last year that he had requested another review from the watchdog regarding the ongoing renovations.

On Friday, the inspector general's office stated it is "actively working" to finalize its review of the project and will make its findings available to both Congress and the public.