Full Breakdown
Senate Stalemate: Thom Tillis Blocks Kevin Warsh's Nomination Amid Powell Investigation
2/16/2026, 2:27:44 AM
Core Event: Tillis Opposes Warsh's Nomination
Senator Thom Tillis (R-N.C.) has declared his opposition to the nomination of Kevin Warsh as chair of the Federal Reserve until the Department of Justice (DOJ) completes its investigation into current Fed Chair Jerome Powell. Tillis, a member of the Senate Banking Committee, emphasized that he will not support any Federal Reserve nominee until the inquiry is resolved, citing concerns over the central bank's independence.
Background & Context: The Powell Investigation
The DOJ's investigation into Powell centers on allegations related to cost overruns associated with the renovation of two Federal Reserve buildings in Washington, D.C. This inquiry was publicly acknowledged by Powell, who stated that it could lead to a criminal indictment stemming from his testimony before the Senate Banking Committee regarding the renovation project. The investigation has drawn criticism from several Republican senators, including Tillis, who argue that it threatens the Fed's independence from political pressures.
Key Figures & Groups: Thom Tillis and Kevin Warsh
Thom Tillis has positioned himself as a key player in the confirmation process for Warsh, who was nominated by President Donald Trump to succeed Powell. While Tillis has described Warsh as a "qualified nominee with a deep understanding of monetary policy," he remains firm in his stance against moving forward with the nomination until the DOJ's investigation concludes. Warsh, a former Federal Reserve Board governor, has not yet formally had his nomination submitted to the Senate.
Official Statements & Responses
In a recent interview, Tillis reiterated his position, stating, "I have no intention of supporting the confirmation of any nominee to the Fed Board until the Justice Department's investigation into Powell is resolved." He also criticized the DOJ's approach, suggesting that the investigation could be politically motivated. Treasury Secretary Scott Bessent has expressed a desire to proceed with confirmation hearings for Warsh, emphasizing the importance of continuity at the Fed as Powell's term ends in May.
Criticism & Opposition: Concerns Over the Investigation
Tillis has faced pushback regarding his stance. Some Republicans, including Senator Tim Scott (R-S.C.), have indicated that while Powell may have made errors in judgment, they do not believe he committed a crime. This sentiment reflects a broader skepticism among GOP members regarding the legitimacy of the DOJ's investigation. Tillis has urged prosecutors to heed the opinions of Republican senators who do not view Powell's actions as criminal.
What's Next: Potential Compromise
Despite his firm opposition, Tillis has hinted at the possibility of a compromise that could allow the Senate Banking Committee to begin hearings on Warsh's nomination. This potential shift would depend on the outcome of discussions regarding the investigation into Powell, with some senators suggesting that the Banking Committee could take on oversight of the renovation costs instead of the DOJ.
Verbatim Quotes
- “has not changed: I will oppose the confirmation of any Federal Reserve nominee, including for the position of Chairman, until the DOJ’s inquiry into Chairman Powell is fully and transparently resolved.” — Thom Tillis, U.S. Senator
- “If we undermine the independence of the Fed, there will be catastrophic economic consequences,” — Thom Tillis, U.S. Senator
- “Protecting the independence of the Federal Reserve from political interference or legal intimidation is non-negotiable,” — Thom Tillis, U.S. Senator
- “The word 'indictment' has come out of Mr. Powell's mouth, no one else's. None of this would have happened if they had just responded to our outreach,” — Jeanine Pirro, U.S. Attorney
As the situation develops, the Senate Banking Committee's next steps regarding Warsh's nomination remain uncertain, hinging on the resolution of the ongoing investigation into Powell.
