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By Shane Croucher
Senior Editor
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Republican U.S. Senator Thom Tillis said he would vote to oppose U.S. President Donald Trump's nominee to chair the Federal Reserve's Board of Governors, Kevin Warsh, citing the federal criminal investigation into the incumbent, Jerome Powell. Tillis also sits on the Senate Banking Committee, which vets Fed chair nominees.
The Trump administration is probing Powell over the spiralling costs of a renovation project of the Federal Reserve buildings and his testimony about it to the Senate Banking Committee in June last year. But defenders of Powell, whose term as Fed chair ends in May 2026, believe the investigation is related to the clash between Trump and the Fed chair over monetary policy.
Trump, a Republican, has pressured Powell to lower interest rates and sharply criticized him, undermining the independence of the Federal Reserve, a pillar of the U.S. economy. Powell has said he would not be swayed by Trump's pressure and would uphold the Fed's independence in its decision-making, considering only the best interests of the economy.
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In the 100-seat Senate, Republicans have a slim majority of 53, giving them little breathing room and increasing the power of senators who break with the party line. Warsh, a former Federal Reserve governor, will need a simple majority of present senators voting in favor—with the vice president able to break a tie—making him vulnerable if other Republicans decide to join Tillis.
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"Kevin Warsh is a qualified nominee with a deep understanding of monetary policy," Tillis, a regular Republican critic of Trump, who is retiring, said in a post to X.
"However, the Department of Justice continues to pursue a criminal investigation into Chairman Jerome Powell based on committee testimony that no reasonable person could construe as possessing criminal intent. Protecting the independence of the Federal Reserve from political interference or legal intimidation is non-negotiable.
"My position has not changed: I will oppose the confirmation of any Federal Reserve nominee, including for the position of Chairman, until the DOJ’s inquiry into Chairman Powell is fully and transparently resolved."
Asked late Thursday whether Warsh could be confirmed without Tillis’s support, Senate Majority Leader John Thune said, “probably not.”
Trump launched his latest verbal assault on Powell in a post on Truth Social on Thursday, calling the Fed chair a "moron" after policymakers held steady on rates again.
Powell and the Fed have been mindful of the inflationary risk of cutting rates too quickly in the context of Trump's unleashing of trade wars through an aggressive import tariff policy and the various geopolitical risks around the world.
"Jerome 'Too Late' Powell again refused to cut interest rates, even though he has absolutely no reason to keep them so high," Trump said.
"He is hurting our Country, and its National Security. We should have a substantially lower rate now that even this moron admits inflation is no longer a problem or threat. He is costing America Hundreds of Billions of Dollar a year in totally unnecessary and uncalled for INTEREST EXPENSE."
This article includes reporting by The Associated Press.
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