Federal Reserve chair nominee Kevin Warsh faces a significant hurdle as Senator Thom Tillis, a North Carolina Republican, reiterated his intent to block Warsh’s confirmation. Tillis declared on Tuesday that nothing Warsh could say would change his stance, stating he would withhold support for any Fed nominees until a criminal investigation involving current Fed Chair Jerome Powell concludes. Powell has denied any misconduct, suggesting he is being targeted due to his resistance to rapid interest rate cuts demanded by former President Donald Trump.
When asked by reporters whether Warsh could convince him to lift his blockade during their scheduled meeting, Tillis firmly responded, “No, no.” He emphasized that his decision was driven by concerns over the Federal Reserve’s independence rather than personal feelings towards Warsh. “This is not about people, it’s about process,” Tillis asserted, calling the situation a “foul.”
Post-meeting, Tillis reiterated his opposition to Warsh’s nomination, stating he would vote against advancing it from the Senate Banking Committee unless the investigation into Powell wraps up. He underscored the principle of Fed independence, expressing uncertainty over the market’s reaction if the perception arose that the Fed chair operates at the pleasure of the President.
In addition to the Powell inquiry, Tillis pointed out that the Supreme Court has yet to decide whether Trump had the authority to dismiss Fed Governor Lisa Cook. Trump aimed to remove Cook based on allegations of mortgage fraud, which she, alongside her supporters, vehemently denies. Tillis dismissed this dismissal effort as “sophomoric,” contending that the individual responsible for it should also face consequences.
Despite his opposition to the confirmation process, Tillis noted he is “already impressed” with Warsh’s qualifications and track record. “I’ve known of his work for quite some time, and that’s why I’m so frustrated that I’m not going to be able to cast a vote until we dispose of the other issues,” he stated.
Tillis and fellow Senate Banking Committee members have previously observed Powell testify regarding the renovation of the Fed’s Washington headquarters, an element under investigation by the U.S. Attorney’s Office. During these testimonies, Tillis remarked, “We had seven members of the Banking Committee who were witnesses at the alleged scene of the crime who said no crime was committed.” He questioned the ongoing discussions that are stalling Warsh’s nomination, attributing these delays to what he labeled as a frivolous investigation led by a “young U.S. attorney with a dream.”
Adding a contrasting perspective, Senator Cynthia Lummis, a Republican from Wyoming, expressed support for Warsh after their meeting. “I had an incredibly productive, thoughtful conversation today with Kevin Warsh,” she remarked. Lummis emphasized the need for a transparent and accountable Federal Reserve that embraces financial innovations, including digital assets, which she deems crucial for the nation’s financial future. She looks forward to further discussions with Warsh on modernizing the Fed and ensuring its accountability to the American public and their Congressional representatives.
As the Senate Banking Committee navigates these complex issues, the confirmation of Warsh remains uncertain, heavily contingent on the outcome of ongoing investigations and the political dynamics surrounding Fed leadership.
Original Source: https://www.cnbc.com/2026/03/10/fed-kevin-warsh-thom-tillis-trump.html
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Publish Date: 2026-03-11 03:12:00
