Sen. Thom Tillis to Block Federal Reserve Pick Amid Investigation

On Wednesday, Sen. Thom Tillis announced he would remain committed to blocking President Trump’s nominee for the Federal Reserve chair unless the Justice Department halts its investigation into Jerome Powell.

Initially, North Carolina Republicans suggested they would oppose Kevin Warsh’s confirmation after news broke that Powell was under investigation by federal prosecutors in Washington, D.C.

Tillis stated during an appearance on CNBC’s “Squawk Box,” “I’m prepared to continue this for the remainder of this Congress if that’s what it takes to get to the truth or to restore a meaningful process that preserves the independence of the Fed.”

The senator further emphasized, “If we support this issue and support him, I would be one of the first to introduce Mr. Warsh, but not until this matter is settled.”

Last month, Powell revealed he is being investigated for allegedly misleading Congress during his testimony regarding a $2.5 billion renovation of the Federal Reserve’s headquarters back in summer 2025.

Powell expressed that the criminal investigation feels like retribution for the Fed’s reluctance to swiftly cut interest rates, despite sustained pressure from President Trump, who has openly criticized the Fed’s decisions.

“This raises the question of whether the Fed can maintain its independence in setting interest rates based on economic conditions rather than succumbing to political pressures,” Powell stated, noting that his term ends in May.

Meanwhile, Sen. Tim Scott, who chaired the hearing that triggered the investigation, indicated he doesn’t believe Powell broke any laws. He mentioned that he found Powell’s answers unsatisfactory, yet noted, “Incompetence is not a crime.”

Scott also remarked he saw no perjury evidence from Powell’s testimony last year.

With a narrow 13-11 majority, Republicans hold the upper hand in the Banking Committee, which will vote on Warsh’s nomination. Tillis could potentially block it if all Democrats oppose.

Tillis made clear that the Justice Department’s investigation would also impede any nominee, even if Powell offered to step down in exchange for easing the investigation.

Although Powell’s chairmanship ends in May, he could continue serving on the Federal Reserve board until 2028, but he hasn’t indicated his intentions regarding that yet.

“As far as I’m concerned, the only way forward for the next 333 days in this Congress is either to scale back the policy or pass some form of ruling,” Tillis remarked. “I’m prepared to address this for the next two years.”

Tillis, who will be retiring in January after his term, criticized the decision to issue a subpoena without consulting key figures present, expressing concern about the process.

Though he reflected on Powell’s responses, he ultimately found them lacking in factual accuracy, labeling the investigation as “vindictive” and “frivolous.”

Tillis also suggested it might be worth gathering opinions on whether there was any criminal intent involved from both Republicans and Democrats.

Scott expressed optimism, viewing the likelihood of Tillis permitting Warsh’s nomination as extremely high.