Key US senator lifts block on Fed chair nominee Kevin Warsh
Key US Senator Lifts Block on Fed Chair Nominee Kevin Warsh
Senator Thom Tillis from North Carolina has lifted a major obstacle in President Trump’s push to appoint Kevin Warsh, a former senior Federal Reserve official, as chair to replace Jerome Powell, who has been under consistent pressure from the White House to reduce interest rates. Tillis’ resistance had previously delayed the confirmation process within the Republican-led Senate Banking Committee, as Powell approached the conclusion of his term on May 15.
Tillis stated on NBC’s ‘Meet the Press’ that he was ready to support Warsh’s confirmation, calling him ‘a great Fed chair,’ following the conclusion of the DC US attorney’s review of the Federal Reserve’s expansive renovation project. Powell’s prior congressional remarks on the project were also being examined. The Fed’s internal oversight body is assessing a renovation initiative, which has ballooned to $2.5 billion (approximately €2.13 billion) from an initial estimate of $1.9 billion (around €1.62 billion), a cost that Trump has publicly questioned.
“I believe that there will not be any wrongdoing. Maybe we find a bit foolish here in terms of somebody responsible for the project making a decision they shouldn’t? Maybe. But it doesn’t rise to a criminal prosecution. That was my main concern because I felt prosecutors in Washington viewed the case as a tool to push Powell out before his term ended,” he said.
Tillis, who had previously clashed with Trump over the Medicaid provisions in his major tax and spending bill and later decided not to run for re-election in 2026, emphasized that DOJ assurances indicated the case was ‘completely and fully settled,’ with investigations only proceeding if a criminal referral was made by the respected inspector general.
The Senate Banking Committee announced on Saturday its intention to vote on Warsh’s nomination on Wednesday. Democratic leader Elizabeth Warren of Massachusetts countered, stating, ‘No Republican who claims to value Fed independence should back Warsh’s nomination, as he emerged as little more than President Trump’s puppet during his confirmation hearing.’
Fed policymakers are set to meet on Wednesday, where they are anticipated to maintain the key interest rate at its current level, disregarding Trump’s calls for a reduction. Powell may address his potential tenure on the Fed’s board of governors beyond his chairmanship, a move that could block Trump from appointing a replacement on the seven-member board. His governorship term extends until January 2028.
During a recent hearing, Warsh assured senators he had not committed to rate cuts during his White House discussions and vowed to act as an ‘independent actor’ if confirmed. Prior to the hearing, Trump was questioned on CNBC about his reaction if Warsh didn’t promptly cut rates. ‘I would be,’ he replied.
Free from campaign pressures, Tillis criticized the DOJ’s inquiry led by US Attorney Jeanine Pirro, a loyal Trump ally, as a ‘vindictive prosecution’ that endangered the Fed’s long-standing political independence. On Saturday, Trump was asked about the progress of Warsh’s nomination since the DOJ investigation concluded. ‘It’s smooth sailing,’ he claimed, praising his nominee as ‘fantastic.’ He still questioned, ‘How can a building of that size cost … whatever it’s going to be?’ During a July visit, Trump announced the renovations would cost $3.1 billion (€2.64 billion), but Powell, after reviewing the figure, noted its inaccuracy.
