Full Breakdown
Senator Tillis Drops Opposition to Kevin Warsh’s Fed Chair Nomination
4/27/2026, 2:21:06 AM
Background: DOJ Probe and Fed Renovation
The Justice Department’s criminal investigation into Federal Reserve Chair Jerome Powell centered on the central bank’s $2.5 billion headquarters renovation. The probe, launched after grand-jury subpoenas were issued, was closed by U.S. Attorney Jeanine Pirro, who said the office found no evidence of a crime. The Inspector General’s office, led by Michael Horowitz, continues a separate audit of the project, which was first approved in 2017 and is slated for completion in 2025.
Key Figures
- Sen. Thom Tillis (R-NC) – Senate Banking Committee member who blocked the nomination until the DOJ investigation ended.
- Kevin Warsh – Former Fed governor and President Donald Trump’s nominee for chair.
- Jerome Powell – Outgoing Fed chair whose term ends May 15, 2024.
- President Donald Trump – Nominated Warsh and has repeatedly urged the Fed to cut rates.
- Jeanine Pirro – U.S. Attorney for the District of Columbia, who announced the probe’s closure.
- Elizabeth Warren (D-MA) – Ranking Democrat on the Banking Committee, vocal critic of the nomination.
- Judge James Boasberg – District judge who blocked the subpoenas, deeming them an attempt to pressure Powell.
Timeline of Events
- January 2024 – Trump announces Warsh as his Fed chair pick.
- July 2023 – Powell requests a new Inspector General review of the renovation.
- March 2024 – Judge Boasberg quashes the subpoenas.
- Friday (early April 2024) – Pirro declares the DOJ investigation closed.
- Sunday (April 21, 2024) – Tillis announces he will support Warsh’s confirmation.
- Wednesday (April 24, 2024) – Banking Committee scheduled to vote on the nomination.
Data & Statistics
- Renovation cost: $2.5 billion, up from an original $1.9 billion estimate.
- President Trump later cited a $3.1 billion figure, which Powell disputed.
- The Fed funds the renovation internally, without congressional appropriations.
Why It Matters: Fed Independence and Policy
The episode highlights tension between the central bank’s statutory independence and political pressure to influence interest-rate decisions. Ending the DOJ probe removes a procedural obstacle, potentially allowing a Trump-aligned chair to steer monetary policy ahead of the 2024 election cycle.
Official Statements & Responses
Sen. Tillis said the DOJ’s assurance that the case is “completely and fully settled” enables him to move forward with Warsh’s confirmation. President Trump called Warsh “fantastic” and suggested a smooth confirmation process. The Banking Committee’s ranking Democrat, Sen. Elizabeth Warren, warned that supporting Warsh would betray concerns about Fed independence. Pirro reiterated that her office would reopen the investigation if a criminal referral were made.
Criticism & Opposition
Warren labeled Warsh “nothing more than President Trump’s sock puppet,” arguing that a Republican claiming to care about Fed independence should not back his nomination. Critics also note the stark cost overruns and the perception that the investigation was used as a political lever.
Conflicting Reports & Gaps
- Cost estimates differ: $2.5 billion (Fed) vs. $3.1 billion (Trump).
- Investigation status: Pirro says it is closed, yet the Inspector General’s review remains pending, and the DOJ could reopen the case on a criminal referral.
Verbatim Quotes
- “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
- “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
- “Hours before that, Trump had been asked in a CNBC interview whether he would be disappointed if Warsh did not immediately cut rates.” — Donald Trump, President of the United States
- “will not hesitate to restart a criminal investigation should the facts warrant doing so.” — Jeanine Pirro, U.S. Attorney
- “District Judge James Boasberg blocked the subpoenas, finding they were part of an effort to pressure Powell into voting to lower interest rates or resign.” — James Boasberg, District Judge
What’s Next
The Banking Committee will vote on Warsh’s nomination on April 24. If confirmed, Warsh could assume the chairmanship on May 15, while the Inspector General’s audit of the renovation is expected to be released later this year, potentially influencing congressional oversight of the Fed’s operations.
