Full Breakdown
Senate Standoff: Thom Tillis Blocks Kevin Warsh's Confirmation Amid Powell Investigation
4/22/2026, 9:00:29 PM
Ongoing Investigation into Jerome Powell
Senator Thom Tillis (R-N.C.) has announced his intention to block the confirmation of Kevin Warsh as the next Chair of the Federal Reserve until the Department of Justice (DOJ) concludes its investigation into current Chair Jerome Powell. This investigation centers on Powell's congressional testimony regarding cost overruns associated with a $2.5 billion renovation of the Federal Reserve's headquarters in Washington, D.C. The probe, which has been publicly acknowledged since January, has raised concerns about political interference in the central bank's operations.
Tillis's Position and Influence
During a recent Senate Banking Committee hearing, Tillis expressed his strong opposition to Warsh's nomination, stating, “Let’s get rid of this investigation so I can support your confirmation.” He emphasized that the ongoing investigation is a significant barrier to advancing Warsh's nomination, which requires approval from the committee before reaching the full Senate. Tillis, who holds a pivotal role on the committee, has indicated that he will not support Warsh until the DOJ's inquiry is resolved, framing the investigation as a politically motivated attack on Powell.
Background on the Investigation
The DOJ's investigation into Powell began following his testimony regarding the renovation project, which has been described as unprecedented by Powell himself. He has characterized the inquiry as an attempt by allies of President Donald Trump to intimidate the Federal Reserve, which has resisted pressure to adjust interest rates to align with the administration's demands. Powell has maintained that the renovation is necessary for safety and structural integrity, dismissing claims of extravagant spending.
Criticism of the Investigation
Critics, including Tillis, have labeled the investigation as "bogus," arguing that it undermines the independence of the Federal Reserve. Tillis has stated, “Protecting the independence of the Federal Reserve from political interference or legal intimidation is non-negotiable.” The senator's stance reflects a broader concern among some lawmakers about the implications of political pressure on monetary policy.
Official Statements & Responses
In response to the ongoing situation, Powell has reiterated his commitment to remaining in his position while under investigation. He has defended the renovation project, stating, “There’s no new marble. There are no special elevators. They’re old elevators that have been there.” He has also pointed to inflation and unexpected construction challenges as factors contributing to the project's cost overruns.
What's Next
As the Senate Banking Committee faces a deadlock over Warsh's nomination, the resolution of the DOJ's investigation into Powell remains uncertain. With Tillis's firm opposition, the path forward for Warsh's confirmation appears blocked unless the investigation concludes. This standoff not only complicates the leadership transition at the Federal Reserve but also raises critical questions about the institution's independence from political influence.
Verbatim Quotes
- “Let’s get rid of this investigation so I can support your confirmation,” — Sen. Thom Tillis, R-N.C.
- “Protecting the independence of the Federal Reserve from political interference or legal intimidation is non-negotiable.” — Sen. Thom Tillis, R-N.C.
