Sen. Thom Tillis (R-N.C.) ended his opposition to Kevin Warsh's Federal Reserve chair nomination on Sunday, clearing a major hurdle for President Trump's pick to lead the central bank. Tillis had conditioned his support on the termination of a criminal investigation into current Chair Jerome Powell.
The Justice Department confirmed last week it was dropping that probe, which Tillis called "a serious threat to the Fed's independence." While the criminal investigation is over, the DOJ is allowing the Fed's internal watchdog to examine cost overruns tied to a multi-billion dollar building renovation project.
Tillis said on NBC's Meet The Press that he received "assurances" the DOJ may appeal a judge's ruling to quash Fed subpoenas, though that would be a challenge on legal principles rather than a continuation of the investigation. The senator praised Warsh as "an outstanding nominee."
With Tillis's support, Warsh appears to have the votes needed for confirmation in the closely divided Senate. The shift could reshape monetary policy direction as the Fed navigates inflation and interest rate decisions.
Critics question whether the DOJ's probe was ever a genuine threat to Fed independence or a political maneuver. Some Senate Democrats may still oppose Warsh over concerns about his policy views.