Sen. Tillis blocks Trump’s Fed nominee Warsh until a DOJ probe into Powell concludes, creating a Senate deadlock and raising concerns over Fed independence as leadership uncertainty builds.
Wall Street Journal (gated) with the info so far.
Summary:
- Tillis blocking Fed nominee Warsh until Powell probe ends
- Creates effective deadlock in Senate Banking Committee
- Trump faces rare Republican resistance
- Tillis acting more independently ahead of retirement
- Raises concerns over Fed independence and political pressure
- No clear path forward without resolving investigation
A political standoff in Washington is threatening to derail President Donald Trump’s effort to install Kevin Warsh as the next Federal Reserve Chair, highlighting growing resistance within Republican ranks and raising fresh questions about central bank independence.
Senator Thom Tillis of North Carolina has made clear he will block any Federal Reserve nominee until a Justice Department investigation into current Chair Jerome Powell is concluded. The probe relates to the renovation of the Fed’s headquarters and Powell’s testimony surrounding the project. Tillis has indicated there is “no path” forward for confirmation while the investigation remains active.
The move presents an unusual obstacle for Trump, who has largely maintained firm control over his party. However, Tillis — who has already announced he will retire at the end of his term — appears increasingly willing to push back against the administration. Lawmakers have described him as entering a so-called “YOLO era,” using his vote more freely without concern for political consequences.
Tillis has stressed that his position is rooted in protecting the independence of the Federal Reserve, warning that allowing political pressure to influence leadership decisions could undermine confidence in the US financial system. While he has expressed support for Warsh personally and is open to holding a confirmation hearing, he has drawn a firm line on advancing the nomination while the investigation continues.
Under current Senate arithmetic, Tillis’s opposition is enough to stall the process. The Banking Committee would likely split evenly, blocking the nomination from progressing, while any attempt to force a vote on the Senate floor would require Democratic support — an unlikely outcome.
Senate Majority Leader John Thune has acknowledged the impasse, suggesting the White House will ultimately need to address Tillis’s concerns
