Senator Tillis Blocks Warsh's Fed Nomination Amid Powell Investigation
By John Nada·Feb 4, 2026·2 min read
Senator Thom Tillis blocks Kevin Warsh's Fed nomination until the DOJ investigation into Jerome Powell concludes, raising concerns over central bank independence.
Senator Thom Tillis is firmly blocking Kevin Warsh's nomination to lead the Federal Reserve until the Department of Justice concludes its investigation into Fed Chair Jerome Powell. In an interview on CNBC's 'Squawk Box,' Tillis stated he is 'willing to let it play out for the remainder of this Congress' to ensure central bank independence is maintained. He emphasized, 'I'd be one of the first people to introduce Mr. Warsh if we're behind this and support him, but not before this matter is settled.' This blockade follows the DOJ's recent inquiry into Powell related to cost overruns for renovations at the Federal Reserve headquarters.
Investigations also extend to Fed Governor Lisa Cook over alleged mortgage fraud. Tillis, who plans to retire at the end of his term next January, indicated he would maintain his blockade even if the DOJ were to drop the investigation in exchange for Powell's departure from the Fed after his term. 'To ramp it down or have it adjudicated, that's the only way we get out of here as far as I'm concerned in this Congress for the next 333 days,' he noted.
Tillis criticized the process, stating, 'They got ahead of their blockers. They didn't consult with the adults in the room when they decided to do the subpoenas.' His comments highlight growing tensions surrounding the Federal Reserve's governance and the ongoing scrutiny of its leadership.
This situation brings uncertainty to the Federal Reserve's leadership structure at a critical juncture. The implications for market confidence and monetary policy could be significant as investors watch how this drama unfolds. Tillis's stance suggests that political pressures may continue to influence appointments and decisions at the Fed, potentially impacting the broader economic landscape.
In essence, Tillis's commitment to transparency and accountability within the Fed underscores the importance of maintaining institutional independence, a principle that is vital for economic stability.