Warsh Nomination Gains Momentum as Senator Tillis Lifts Blockade

The Justice Department opened a criminal probe of Fed Chair Jerome H. Powell over alleged cost overruns in a renovation of the Fed’s Washington headquarters, a move critics called politically motivated. On April 24, U.S. Attorney Jeanine Pirro announced the DOJ was dropping the case and transferring it to the Fed’s inspector general, while warning she would “not hesitate” to reopen it if warranted.

New York Times

• July 2025 – Inspector general begins internal review of renovation costs.

New York Times

• April 21, 2026 – Kevin M. Warsh testifies before the Senate Banking Committee.

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• April 24, 2026 – Pirro announces DOJ withdrawal and IG takeover.

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• April 26, 2026 – Senator Thom Tillis (R-N.C.) tells “Meet the Press” he will move forward with the vote.

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• April 27, 2026 – Committee scheduled to vote on Warsh’s confirmation.

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Tillis said DOJ assurances that the probe was “completely and fully ended” removed what he described as a weapon against Fed independence. Pirro clarified that the IG now controls the inquiry and could refer evidence for criminal prosecution. Acting Attorney General Todd Blanche emphasized that any IG-found criminal conduct would trigger a new DOJ investigation. White House press secretary Karoline Leavitt framed the shift as the probe continuing under a different legal authority.

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Democratic senators have labeled Warsh a “sock puppet” of President Trump and warned that his push for “regime change” and rapid rate cuts could jeopardize the Fed’s credibility amid rising energy costs.

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Pirro’s claim the investigation is over contrasts with Leavitt’s assertion that it “still continues” under another authority, while the DOJ says the probe now rests solely with the IG and has not indicated a criminal referral is required.

New York Times

• “They have made it very clear that the current investigation is completely and fully ended,” — Thom Tillis, Senator

New York Times

• “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, Senator

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• “If he uncovers evidence of criminal conduct, there is no doubt that we will investigate,” — Todd Blanche, Acting Attorney General

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The Senate Banking Committee will vote on Warsh’s confirmation on April 27, followed by a full-Senate vote. If confirmed, Warsh intends to alter inflation measurement and pursue rate cuts, while Pirro’s appeal deadline on May 4 and Powell’s continued board role will shape the Fed’s near-term governance. Warsh’s confirmation would give him the authority to implement his proposed changes.

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