For months, Kevin Warsh’s path to becoming the chairman of the Federal Reserve was obstructed by one Republican senator: Thom Tillis of North Carolina. Tillis had made it clear that he would block Warsh’s confirmation until the Justice Department dropped what he called an illegitimate criminal investigation into current Fed Chair Jerome Powell. Last Friday, the DOJ decided to drop the investigation, and by Sunday, Tillis lifted his block.
The Senate Banking Committee is now expected to vote on Warsh’s nomination this Wednesday, with a floor vote potentially following before Powell’s term as chair expires on May 15.
Tillis had expressed his concerns since January when U.S. Attorney Jeanine Pirro’s office served subpoenas to the Federal Reserve, targeting Powell over cost overruns in the multibillion-dollar renovation of the Fed’s Washington headquarters. Tillis described the investigation as a “bogus” and “vindictive prosecution,” stating that he would not allow any Federal Reserve nominees to pass through the Senate Banking Committee while the investigation remained active.
Tillis asserted that his stance was not a rejection of Warsh, but rather an opposition to the Department of Justice investigation.At Warsh’s confirmation hearing last Tuesday, Tillis said, “Let’s get Warsh in there. Let’s get Chair Powell comfortable with actually exiting at some point, not to 2028, and do that by eliminating a bogus investigation that started this whole drama.”
The investigation has faced significant setbacks in court. Earlier this year, a federal judge dismissed the Department of Justice’s subpoenas, stating that their intent was “to harass and pressure Powell to resign.” Additionally, a prosecutor involved in the case admitted during a closed-door hearing that the government had found no evidence of any crime.
It comes in mens and womens and lets your friends know you're happy to express your views and don't care what anyone thinks! Cheers!
On Friday, Pirro announced on X that her office would be closing the investigation. Instead, she redirected the focus of the headquarters renovation inquiry to the Federal Reserve’s inspector general, who had already initiated a probe into the project last July.
“This morning the Inspector General for the Federal Reserve has been asked to scrutinize the building costs overruns — in the billions of dollars — that have been borne by taxpayers,” Pirro wrote. “Accordingly, I have directed my office to close our investigation as the IG undertakes this inquiry.”
This morning the Inspector General for the Federal Reserve has been asked to scrutinize the building costs overruns – in the billions of dollars – that have been borne by taxpayers.
The IG has the authority to hold the Federal Reserve accountable to American taxpayers. I…
— US Attorney Pirro (@USAttyPirro) April 24, 2026
Pirro did add that she wouldn’t hesitate to reopen an investigation and bring charges if warranted. But for now at least, it sounds like everyone is trying to do the right thing and it comes at a time when the president could sure use a win.
Tillis right this time; let’s get Warsh in there, and lets get Powell out. Never forget the rate cuts he pushed through a couple months before the 2024 election to help Kamala Harris when inflation was a lot worse, while refusing to do so for Trump.
