Full Breakdown
Warsh Nomination Advances as Senate Clears Blockade
4/27/2026, 8:00:53 PM
Confirmation Moves Forward After DOJ Ends Powell Probe
President Donald Trump’s nominee Kevin Warsh is poised to become Federal Reserve chair after Sen. Thom Tillis announced his support. Tillis’s opposition ended when the Department of Justice declared its investigation of current chair Jerome Powell closed. The Senate Banking Committee will vote Wednesday, with a full Senate vote expected the following week, positioning Warsh to assume the chairmanship in May as Powell’s term ends on May 15.
Background and Timeline
Warsh, a former Fed governor (2006-2011), was nominated in January 2026. A DOJ probe into cost overruns of the Fed’s $2.5 billion Washington-campus renovation, which also involved former U.S. Attorney Jeanine Pirro, was closed on April 26, prompting Tillis to lift his blockade. The Senate Banking Committee hearing began April 21; the committee vote is set for April 29, with a full Senate vote slated for May 2. Powell’s term ends May 15.
Policy Implications
Warsh told senators he seeks a “regime change,” proposing new inflation-measurement methods, revised communication, and a willingness to cut rates. Though previously an inflation hawk, his stance could shift the Fed toward easier policy amid persistent inflation and uneven labor-market trends.
Official Statements & Responses
Sen. Tillis said DOJ assurances removed any threat to Fed independence, clearing his support. Acting AG Todd Blanche confirmed the probe’s closure but warned the department would act on new evidence. Warsh pledged to act independently despite expectations for immediate rate cuts.
Criticism & Opposition
Sen. Elizabeth Warren warned that supporting Warsh would betray Fed independence, calling him President Trump’s “sock puppet.” Critics argue his close alignment with the president could erode the central bank’s autonomy.
Conflicting Reports & Gaps
Renovation cost estimates vary: $1.9 billion (initial), $2.5 billion (current DOJ figure), and $3.1 billion (Trump’s claim). While the DOJ says the probe is closed, a legal filing notes Powell cannot resign while the investigation remains pending, and the Acting AG said a reopening is possible if evidence emerges.
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,” — Sen. Thom Tillis, R-NC
- “If he uncovers evidence of criminal conduct, there is no doubt that we will investigate,” — Acting Attorney General Todd Blanche
- “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.” — Sen. Elizabeth Warren
- “I believe that there will not be any wrongdoing.” — Jerome Powell
What’s Next
The Senate Banking Committee will vote on April 29; if approved, the full Senate will consider Warsh on May 2. A confirmed Warsh would inherit a Fed facing stubborn inflation, uneven labor-market trends, and heightened scrutiny of its independence, making his early policy moves closely watched.
