Full Breakdown
Tillis Lifts Blockade, Paving Way for Kevin Warsh’s Fed Chair Confirmation
4/26/2026, 8:25:22 PM
Core Event
On April 26, 2026, the DOJ announced it was ending its probe into Fed Chair Jerome Powell’s $2.5 billion renovation. The same day, Senator Thom Tillis (R-NC) said he would no longer block the Senate confirmation of Donald Trump’s nominee, Kevin Warsh, removing the procedural hurdle before Powell’s term ends on May 15.
Background
The DOJ opened the probe in January over cost overruns that raised the Fed’s renovation estimate from $1.9 billion to $2.5 billion. Powell called the investigation “intimidation” to pressure rate cuts. A March judge blocked the subpoenas, and the Justice Department shifted oversight to Fed Inspector General Michael Horowitz for a review.
Timeline
Key dates: DOJ opened the probe in January; a judge blocked subpoenas in March; the DOJ announced closure on April 24; Tillis lifted his hold on April 26; the Senate Banking Committee will vote on April 30; Powell’s term ends May 15.
Impact
The episode tests Fed independence and could shift monetary policy if Warsh, who favors changes to inflation measurement and rate cuts, is confirmed. Markets will watch the outcome ahead of the Fed’s FOMC meeting on April 29.
Official Statements
Tillis said DOJ assurances removed threat to Fed independence. Pirro announced the department would step back and let the inspector general lead, noting she could restart the probe if warranted. Senate Democrats warned that confirming Warsh could invite “future baseless investigations,” while Republicans said the decision restores “competence and confidence” in Fed decision-making.
Opposition
Warren called Warsh “nothing more than President Trump’s sock puppet,” arguing his confirmation would undermine Fed independence. Durbin called the DOJ’s actions a “threat of future baseless investigations.” Critics note Warsh’s agenda includes “regime change” at the Fed.
Conflicts
The DOJ says the investigation is “closed,” yet Pirro has said she may restart it if facts warrant. White House describes the probe as “moved” rather than dropped, implying continued oversight. No inspector-general report has been released, leaving the cost-overrun facts unresolved.
Quotes
- “I am prepared to move on with the confirmation of Mr. Warsh.” — Thom Tillis, U.S. Senator
- “I have no intention of leaving the Board until the investigation is well and truly over, with transparency and finality.” — Jerome Powell, Federal Reserve Chair
- “I will not hesitate to restart a criminal investigation should the facts warrant doing so.” — Jeanine Pirro, U.S. Attorney
- “I would be disappointed if Warsh did not immediately cut rates.” — Donald Trump, President of the United States
Next Steps
The Senate Banking Committee will vote on Warsh’s nomination on April 30, followed by a Senate vote. The Fed’s inspector general is slated to release the renovation audit within weeks, which could affect Powell’s decision to stay as a governor. The Fed’s FOMC meeting on April 29 will proceed amid leadership transition, and markets will monitor policy signals.
