GOP senator will block Warsh nomination until 'bogus' Powell probe ends

• Tillis called the DOJ investigation 'bogus' and said it could be dropped in 'five minutes,' urging immediate action to allow Warsh's confirmation to proceed
• Powell confirmed the unprecedented criminal investigation on Jan. 11, which relates to his June 2025 testimony denying luxury features in the $2.5 billion Fed building renovation
• The Fed renovation is self-funded through interest on government securities, not taxpayer money, with completion expected in fall 2027 and occupancy in March 2028

Summary

Key Development:

Senator Thom Tillis (R-N.C.) announced he will block Kevin Warsh's confirmation as Federal Reserve Chair until the Justice Department drops its criminal investigation into current Fed Chair Jerome Powell. Tillis called the probe "bogus" and stated it could be ended in "five minutes."

Background:

On January 11, Powell confirmed the DOJ opened a criminal investigation into his congressional testimony regarding the Federal Reserve's building renovation project. The probe focuses on statements Powell made to the Senate Banking Committee in June 2025 about the renovation details.

Key Figures:

• $2.5 billion: Estimated cost of renovating the Fed's two main Washington, D.C. office buildings
• The project is self-funded by the Fed, not taxpayer money
• Completion timeline: Fall 2027, with employees returning March 2028

Context:

Powell denied various renovation features during June 2025 testimony, stating there was "no new marble," "no special elevators," "no water features," "no beehives," and "no roof garden terraces." He attributed cost overruns to unexpected construction challenges and inflation. Powell also described the Eccles Building as "not really safe" and lacking waterproofing.

Market Implications:

The confirmation delay creates uncertainty at the Federal Reserve during a critical period, with the Supreme Court weighing limits on Fed independence and ongoing inflation concerns testing the Trump administration's economic agenda. Warsh faces the prospect of leading the central bank amid heightened political tensions and institutional challenges.

Despite praising Warsh's "impeccable" credentials, Tillis maintains his block pending the investigation's closure.