Full Breakdown
Warsh Nomination Advances After DOJ Ends Probe
4/26/2026, 8:10:23 PM
Sen. Tillis Ends Hold on Warsh Nomination
Sen. Thom Tillis (R-NC) announced Sunday he will back President Donald Trump’s Fed-chair nominee Kevin Warsh, ending his hold that depended on the Justice Department’s probe of Chair Jerome Powell. Tillis said DOJ assurances that the case was not a “weapon” clear the path for Warsh’s confirmation “on time.”
DOJ Investigation of Fed Renovation
The DOJ opened a criminal probe in January 2026 into cost overruns of the Fed’s Washington headquarters renovation. A federal judge quashed grand-jury subpoenas in March as harassment. On April 24 the department closed the case and handed oversight to Inspector General Michael Horowitz. The project’s budget rose from $1.9 billion to $2.5 billion, a $1 billion overrun.
Implications for Fed Independence and Policy
The case tests the Fed’s statutory independence. Warsh, a former governor, has pledged “regime change” and faster rate cuts, suggesting a shift in monetary policy. Powell’s choice to stay on the board after his chair term ends May 15 would preserve a Democratic-leaning vote on the Federal Open Market Committee.
Official Statements
Sen. Tillis said the DOJ gave “assurances … not using the DOJ as a weapon.” U.S. Attorney Jeanine Pirro announced the probe was transferred to Inspector General Michael Horowitz. White House spokesperson Kush Desai said the Senate will swiftly confirm Warsh. The Federal Reserve declined comment.
Criticism & Opposition
Sen. Elizabeth Warren warned that “no Republican claiming to care about Fed independence should support moving forward the nomination of Kevin Warsh, who proved … to be nothing more than President Trump’s sock puppet.” Critics argue Warsh’s close ties to the president risk politicizing monetary policy.
Conflicting Reports & Gaps
The White House described the DOJ action as a “move” rather than a full drop, while Pirro said she would restart the probe if warranted. No appeal to Judge Boasberg’s ruling has been filed, leaving the future scope of the Inspector General’s review uncertain.
Verbatim Quotes
- “Powell said the criminal investigation was "intimidation" and part of Trump's pursuit of lower interest rates.” — Jerome Powell, former Fed chair
- “If he uncovers evidence of criminal conduct, there is no doubt that we will investigate,” — Todd Blanche, Acting Attorney General
- “no Republican claiming to care about Fed independence should support moving forward the nomination of Kevin Warsh, who proved in his nomination hearing to be nothing more than President Trump’s sock puppet.” — Elizabeth Warren, U.S. Senator
- “I am prepared to move on with the confirmation of Mr. Warsh. I think he’s going to be a great Fed chair,” — Thom Tillis, U.S. Senator
What’s Next
The Senate Banking Committee is slated to vote on Warsh Tuesday, with a full Senate vote to follow. The Fed’s policy meeting on April 29 is expected to keep rates unchanged. The Inspector General’s report is due within 90 days, and Powell’s decision on remaining a governor will be addressed at his next press conference.
