Tillis opposes Kevin Warsh Fed candidate until Powell investigation is over

Sen. Thom Tillis said Friday that he will oppose President Donald Trump’s nomination of Kevin Warsh to lead the Federal Reserve until the criminal investigation into current Chairman Jerome Powell is “fully” resolved.

“Protecting the independence of the Federal Reserve System from political interference and legal threats is non-negotiable,” the North Carolina Republican said in a statement on X.

Mr. Tillis, who is scheduled to retire, vowed earlier this month to oppose any new Fed nominations until the Justice Department’s controversial investigation into Mr. Powell is completed.

Mr. Tillis serves on the Senate Banking, Housing, and Urban Affairs Committee, which includes 13 Republicans and 11 Democrats.

If one Republican on the committee refuses to vote on the presidential nominee, it would create an impasse that could result in Warsh’s nomination being revoked unless the full Senate recommends confirmation.

Mr. Powell said he is under investigation by the Justice Department, ostensibly in connection with the Fed’s multibillion-dollar headquarters renovation plan and Congressional testimony about the plan.

Powell said the real reason for the investigation was that he and other Fed officials refused to cut interest rates as quickly and as deeply as President Trump had demanded.

“Kevin Warsh is a highly qualified candidate with a deep understanding of monetary policy,” Tillis said in a statement.

“However, the Department of Justice continues to pursue a criminal investigation against Chairman Jerome Powell based on the committee’s testimony that no reasonable person could construe as having criminal intent,” Tillis said.

“My position remains unchanged. I will oppose confirmation of any nomination for Federal Reserve Directorship, including the position of Chairman, until the Department of Justice’s investigation into Chairman Powell is fully and transparently resolved.”

Sen. Elizabeth Warren (Mass.), the top Democrat on the Banking Committee, said in a statement Friday that “Republicans who claim to value Fed independence should not agree to advance Mr. Warsh’s nomination.”

“Donald Trump said anyone who doesn’t agree with him will never be Fed chairman,” Warren said.

“Former Fed Governor Kevin Warsh, who cared more about helping Wall Street after the 2008 financial crisis than millions of unemployed Americans, apparently passed the loyalty test,” she said.

“The nominations are the latest step in President Trump’s attempt to seize control of the Federal Reserve, and follow the Trump administration’s arming of the Department of Justice to launch a criminal investigation into Fed President Lisa Cook and current Fed Chairman Jerome Powell.”