Republican Senator Thom Tillis said Sunday he will no longer block Kevin Warsh’s confirmation as Federal Reserve chair, following the conclusion of a US Department of Justice probe into Jerome Powell.
In a post on X, Tillis said he has been assured that the DOJ’s three-month-long investigation into the Federal Reserve chair over the billion-dollar headquarters renovation project has now closed, and is now “looking forward” to supporting Warsh’s confirmation.
“I have been clear from the start: the U.S. Attorney’s Office criminal investigation into Chair Powell was a serious threat to the Fed’s independence, and it needed to end before I could support Kevin Warsh’s confirmation,” he said, adding:
“I welcome the inspector general’s investigation. This is a necessary and appropriate measure, and I have confidence it will be conducted thoroughly and professionally.”
Tillis, a Republican senator on the Senate Banking Committee, had the power to halt the process by using a procedural hold or withholding his vote to prevent the committee from advancing Warsh’s nomination to a full Senate floor vote.
Source: Thom Tillis
Powell’s tenure will end May 15, with Warsh likely to take office in the following days once confirmed by the full Senate. The Senate Banking Committee has scheduled its vote for April 29, while the full Senate vote has not been given a specific date, but it could occur during the week of May 11.
There is debate over how Warsh’s leadership at the US central bank could affect the crypto market.
Former Fed governor Warsh has been considered hawkish in his approach to fiscal policy and slashing interest rates, which could hurt higher-risk assets such as cryptocurrency.
However, with US President Donald Trump repeatedly pressuring Powell to cut rates, some have speculated that Warsh could be more inclined to cut rates than his predecessor. However, going by Warsh’s recent comments, he hasn’t explicitly outlined which way he will go, noting that Trump hasn’t put any pressure on him and that the Fed’s decisions will remain independent.
Warsh is also considered to be friendly toward the crypto industry. As part of Warsh’s recent investment disclosures, he indicated that he had exposure to more than 30 crypto projects, including assets such as Solana and decentralized exchanges like dYdX.
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