Path Clears for Kevin Warsh as Senator Tillis Ends Fed Chair Blockade

The confirmation process for Federal Reserve chair nominee Kevin Warsh is expected to proceed without further delay after Senator Thom Tillis (R-N.C.) announced his willingness to end a strategic blockade of the nomination. Tillis indicated that the path is now clear for Warsh to be confirmed on schedule. Tillis had previously vowed to withhold his support until the U.S. Department of Justice ceased an investigation into current Fed Chair Jerome Powell. The probe centered on alleged cost overruns associated with renovations at the Federal Reserve building, which Tillis argued could be used as a political weapon to threaten the independence of the central bank. The impasse ended after U.S. Attorney Jeanine Pirro announced that the DOJ is transferring the matter to the Federal Reserve's inspector general's office. Tillis stated he received assurances that the current investigation is fully closed and will only be reopened in the event of a formal criminal referral from the inspector general. This resolution is critical given the narrow composition of the Senate Banking Committee, which consists of 13 Republicans and 11 Democrats. Because a single Republican defection would have deadlocked the panel and blocked Warsh from advancing, Tillis's shift in position removes a significant political hurdle for the nominee.