Sen. Tillis prepared to end blockade of Fed chair nominee Kevin Warsh

• Tillis had vowed to block Warsh's confirmation in the Senate Banking Committee despite supporting him, using his vote as leverage to protect Fed independence
• The DOJ investigation concerned alleged cost overruns related to renovations at the Federal Reserve building under Powell's tenure
• Tillis stated Warsh can now move forward with his confirmation 'on time' after receiving assurances from the DOJ

Summary

Key Development: Sen. Thom Tillis (R-N.C.) announced Sunday he is prepared to end his blockade of Federal Reserve Chair nominee Kevin Warsh's confirmation following the Department of Justice's decision to drop its investigation of current Fed Chair Jerome Powell.

Main Players:

• Kevin Warsh: Nominee for Federal Reserve Chair
• Jerome Powell: Current Fed Chair, subject of now-dropped DOJ investigation
• Sen. Thom Tillis: Senate Banking Committee member who had been blocking Warsh's confirmation

Background: Tillis had withheld his vote for Warsh—despite supporting him—on the Senate Banking Committee until the DOJ ended its investigation of Powell. The Justice Department had been investigating Powell over alleged cost overruns related to Federal Reserve building renovations.

Key Quotes: Speaking on NBC's "Meet the Press," Tillis stated, "I am prepared to move on with the confirmation of Mr. Warsh, I think he's going to be a great Fed chair." He emphasized the need for "assurances from the DOJ that I needed to make sure they were not using the DOJ as a weapon to threaten the independence of the Fed."

Market Implications: The removal of this political obstacle clears the path for Warsh's confirmation to proceed "on time," reducing uncertainty around Federal Reserve leadership transition. This development supports Fed independence and should ease concerns about political interference in monetary policy decisions.

Timeline: The confirmation hearing was referenced as occurring on April 21, 2026, with Tillis's announcement coming shortly after on a Sunday.