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Tillis Greenlights Kevin Warsh’s Nomination, Accepting DOJ’s Assurances

The Senate Banking Committee voted to move forward with Kevin Warsh’s nomination, marking the end of Sen. Thom Tillis’ block on his confirmation.

Sen. Thom Tillis, R-N.C., is seen in the U.S. Capitol.

Sen. Thom Tillis had vowed to block any nominee for Fed chair due to the administration’s criminal probe into the current chair, Jerome Powell. Tom Williams/CQ Roll Call via AP

Sen. Thom Tillis, casting the deciding vote to advance Kevin Warsh’s nomination to lead the Federal Reserve, said he’s “got confidence” the Justice Department investigation into Fed Chair Jerome Powell is over.

The Senate Banking Committee voted along party lines on Wednesday to send Warsh’s nomination to the Senate floor, concluding a monthslong block on the confirmation process.

Powell’s term expires on May 15.

Tillis, who had vowed to block any Fed chair nominee until the administration ended its criminal probe into Powell’s management of a multibillion-dollar Fed renovation, said he has no issue with the Justice Department pursuing an appeal of a federal judge’s orders throwing out subpoenas in the probe.

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“The appeal has no impact on reopening the investigation. They have a matter that they want to settle, which is fine by me. I’ve got confidence that this investigation is over,” Tillis said.

U.S. Attorney for the District of Columbia Jeanine Pirro announced last Friday that she instructed her office to drop the investigation, which will be taken up by Fed Inspector General Michael Horowitz. She did, however, leave the door open to future charges against Powell, depending on what the IG’s report finds.

Tillis said Wednesday that he believes in Horowitz’s ability to investigate the matter and to refer any criminal findings to authorities.

The retiring North Carolina Republican maintained for months that the DOJ’s accusations that Powell lied before the Banking Committee during testimony last year about the building renovations were false. Powell has claimed that the probe was a political pressure campaign from the Trump administration to lower interest rates and stimulate the economy.

Sen. Elizabeth Warren, the committee’s ranking member, argued that Warsh’s nomination, as well as criminal accusations against Fed Governor Lisa Cook, constitute Trump’s continued attempts to “go after” the Fed and influence monetary policy.

“A vote today by this committee to advance Mr. Warsh will bring the president one step closer to completing his illegal attempt to seize control of the Fed and to artificially juice the economy,” Warren said.

Warren doubled down on her criticism of Warsh’s tenure as a Fed governor in the lead-up to and through the 2008 financial crisis, calling Warsh “a Trump sock puppet who is so cowed by the president that he could not even say that Donald Trump lost the 2020 election.”

Tillis pushed back on Warren’s characterization of Warsh in his remarks.

“I think that Senator Warren — I get that she wants to score some political points — but she is flatly wrong on every point she just tried to make,” Tillis said.

Sen. Tim Scott, who chairs the Banking Committee, defended Warsh as a leader “battle-tested” by his tenure at the Fed during the financial crisis.

“Kevin Warsh’s leadership is absolutely essential now at the Federal Reserve than ever before,” Scott said.

Sen. Raphael Warnock said Trump’s persistent attacks on Powell and Cook threaten Fed independence and the impact of its policymaking on working people.

“Working families in Georgia and across the country struggling in this Trump economy deserve to know that the Fed is on their side, on their side maximizing their chances to keep a good-paying job and keeping their lives affordable. Not on the side of the president’s poll numbers or his political concerns as we approach the midterm,” Warnock said.