Washington — Sen. Thom Tillis of North Carolina said Sunday that he is prepared to move forward with the nomination of Kevin Warsh for chairman of the Federal Reserve’s Board of Governors, bringing an end to his blockade on nominations to the central bank.
Tillis, a Republican who sits on the Senate Banking Committee, had vowed not to support any nomination to the Fed while the Justice Department continued its investigation into the current chairman, Jerome Powell. But U.S. Attorney Jeanine Pirro announced Friday that her office would be ending the probe into Powell and the Fed’s $2.5 billion renovation of its Washington, D.C., headquarters.
In an interview with NBC’s “Meet the Press,” Tillis said he had received assurances from the Justice Department that the investigation is closed and would only be reopened if the Fed’s inspector general, which is examining the renovation project, made a criminal referral.
“I am prepared to move on with the confirmation of Mr. Warsh,” he said. “I think he’s going to be a great Fed chair.”
In a statement shared to X, Tillis said “it is time for the Federal Reserve to move beyond this distraction and return its full attention to its mission.”
“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 wrote. “I welcome the Inspector General’s investigation. This is a necessary and appropriate measure, and I have confidence it will be conducted thoroughly and professionally.”
Powell’s term as Fed chairman ends May 15, and Mr. Trump announced in January that he had selected Warsh to lead the central bank’s board. Warsh appeared before the Banking Committee last week. During the hearing, Tillis reiterated that while he supported Warsh’s nomination, he wouldn’t vote to confirm him until the Justice Department ended its investigation.
The Banking Committee is set to convene Wednesday to vote on Warsh’s nomination. There are 13 Republicans on the committee and 11 Democrats.
Powell revealed in January that the Fed had received grand-jury subpoenas as part of the criminal probe involving the years-long project to renovate the central bank’s headquarters. But in March, U.S. District Judge James Boasberg blocked the subpoenasfinding they were part of an effort to pressure Powell into voting to lower interest rates or resign.
Pirro has vowed to appeal the decision. Tillis said Sunday that the Justice Department assured him any appeal would be focused on the judge’s basis for quashing the subpoenas rather than a vehicle for resuming the investigation.
Mr. Trump frequently vents his frustrations with Powell over his interest-rate decisions and suggested last year that the construction at the Fed could be grounds to fire Powell. The renovation project, which encompasses two buildings, was first approved in 2017 and is set to be completed next year. The estimated cost of the project ballooned from $1.9 billion to nearly $2.5 billion, which the Fed said was the result of several factors, including a rise in the cost material, equipment and labor. The central bank is self-funded.
The Fed’s inspector general’s office, which is led by Michael Horowitz, has twice conducted audits regarding the bank’s renovation projects, and Powell told the Senate last year he had asked the watchdog to take another look at the ongoing overhaul of its headquarters.
The inspector general’s office said Friday that it is “actively working” to finish its review of the project and would make its findings available to the public and Congress.