Senator Thom Tillis of North Carolina has lifted his opposition to Kevin Warsh's nomination as Federal Reserve Chair. This move clears a significant obstacle for President Trump's nominee.
Tillis, previously holding up the nomination in the Senate Banking Committee, stated, "I am prepared to move on with the confirmation of Mr. Warsh. I think he’s going to be a great Fed chair." This announcement follows the US Attorney for the District of Columbia concluding its investigation into the Fed’s multibillion-dollar building renovations. The probe had cast a shadow over Fed Chair Jerome Powell, who had requested the inspector general's review.
While the renovation project's cost escalated to an estimated $2.5 billion, Tillis expressed confidence that no criminal wrongdoing occurred. He indicated that assurances from the Justice Department confirmed the case was settled and would only reopen with a criminal referral from a respected inspector general.
The Senate Banking Committee plans to vote on Warsh's nomination. Meanwhile, Fed policymakers are expected to hold interest rates steady, despite President Trump's calls for a cut. Fed Chair Powell may also address his future on the Fed's board following his term as chair.
During his confirmation hearing, Warsh pledged to be an "independent actor" and denied promising to cut interest rates. President Trump, however, had previously stated he would be disappointed if Warsh did not lower rates. Senator Elizabeth Warren has voiced strong opposition, labeling Warsh as "President Trump’s sock puppet."
The US Attorney's office stated it would not hesitate to restart an investigation if new facts warrant it. Warsh, a financier and former Fed governor, was nominated by President Trump in January.