Sen. Thom Tillis (R-N.C.) announced Sunday that he will support Kevin Warsh's nomination to serve as Federal Reserve chair after the Department of Justice closed its criminal investigation into current Chair Jerome Powell and assured lawmakers it would not appeal a recent court ruling blocking subpoenas related to the central bank's $2.5 billion renovation project in Washington, D.C.
Tillis, a member of the Senate Banking Committee, had previously said he would withhold his approval for Warsh until the criminal probe was resolved. He wrote on X that he takes the DOJ "at its word" that the investigation is closed and any appeal of U.S. District Judge James Boasberg's ruling will be pursued only on legal principles and not to reissue subpoenas.
What the Left Is Saying
Senate Democrats have largely opposed Warsh's nomination, with critics arguing he lacks the experience and independence needed for the role. The party has also raised concerns about potential political influence over monetary policy decisions. Progressive economists have warned that a Warsh-led Fed could prioritize Wall Street interests over workers and consumers.
What the Right Is Saying
Tillis called Warsh "an outstanding nominee" and said it is "time for the Federal Reserve to move beyond this distraction and return its full attention to its mission." Senate Republicans have praised Warsh's credentials, including his service on the Fed's board from 2011 to 2018. The White House has defended the nomination as bringing experienced perspective to monetary policy.
What the Numbers Show
The DOJ announced Friday that U.S. Attorney for the District of Columbia Jeanine Pirro closed the criminal investigation into Powell and said an inspector general inquiry would proceed instead. Judge Boasberg blocked two subpoenas served on the Fed's board seeking records from the bank's renovation project, ruling the government "did not come close" to convincing him to change his decision.
The Bottom Line
The Senate Banking Committee is set to advance Warsh's nomination this week. Tillis's support removes a significant obstacle for the nominee, as Republicans can only afford one defection to secure confirmation in the closely divided Senate.