Tillis says he’s prepared to move forward with Kevin Warsh’s nomination for Fed chair

Sen. Thom Tillis of North Carolina made a significant announcement on Sunday regarding the nomination of Kevin Warsh for chairman of the Federal Reserve’s Board of Governors. Tillis, a Republican member of the Senate Banking Committee, had previously blocked any nominations to the Fed due to an ongoing investigation by the Justice Department into the current chairman, Jerome Powell. However, U.S. Attorney Jeanine Pirro recently declared that the investigation into Powell and the Fed’s $2.5 billion renovation project in Washington, D.C., has been concluded.

In an interview with NBC’s “Meet the Press,” Tillis stated that he had received assurances from the Justice Department that the investigation had been closed and would only be reopened if the Fed’s inspector general made a criminal referral. With this development, Tillis expressed his readiness to proceed with the confirmation of Kevin Warsh, whom he believes will make an excellent Fed chair.

Tillis emphasized the importance of putting an end to the distraction caused by the investigation and allowing the Federal Reserve to focus on its core mission. He had consistently maintained that the investigation posed a threat to the Fed’s independence and needed to be resolved before he could support Warsh’s confirmation. Tillis welcomed the Inspector General’s investigation into the renovation project, expressing confidence that it would be conducted thoroughly and professionally.

The Senate Banking Committee is scheduled to convene on Wednesday to vote on Warsh’s nomination, with a majority of Republicans on the committee. Powell had disclosed earlier this year that the Fed had received grand-jury subpoenas related to the renovation project, but these subpoenas were blocked by a U.S. District Judge in March. Pirro has indicated plans to appeal this decision, but Tillis clarified that the Justice Department assured him that any appeal would not be a means to reopen the investigation.

President Trump has been vocal about his disagreements with Powell over interest-rate decisions and had previously suggested that the construction at the Fed could be grounds for Powell’s dismissal. The renovation project, approved in 2017, has faced cost overruns, with the Fed attributing the increase to various factors such as rising material and labor costs.

The Fed’s inspector general, led by Michael Horowitz, is actively reviewing the renovation project and is expected to release its findings to the public and Congress. The ongoing scrutiny of the project underscores the importance of transparency and accountability within the Federal Reserve system.

Overall, Tillis’ decision to support Warsh’s nomination marks a significant development in the Federal Reserve’s leadership transition. With the investigation concluded and a path forward for Warsh’s confirmation, the central bank can now focus on its crucial responsibilities of monetary policy and financial stability.