By Elsie Kamsiyochi
Republican Senator said on Sunday that he is now prepared to support the confirmation of as the next chair of the U.S. Federal Reserve, removing a major political obstacle that had stalled the nomination for months. Tillis’ decision comes after the U.S. Department of Justice dropped its investigation into current Fed Chair , a probe that had raised concerns about political pressure being placed on the central bank.
Tillis had previously promised to block any nominee for the Federal Reserve’s top position while the investigation into Powell remained active. He argued that the inquiry threatened the independence of the Federal Reserve, an institution traditionally shielded from political influence. Speaking in a television interview, Tillis said he now believes the matter has been fully resolved and that Warsh’s confirmation process should move forward without further delay.
“I am prepared to move on with the confirmation of Mr. Warsh,” Tillis said, adding that he believes Warsh has the experience and leadership needed to guide the central bank through a period of economic uncertainty. His support now gives Senate Republicans enough votes in the Banking Committee to advance the nomination to the full Senate floor.
The Justice Department’s decision to end the investigation into Powell marked a turning point. The inquiry had centered on the handling of a costly renovation project at Federal Reserve buildings in Washington, but critics said it appeared to be part of a broader effort to pressure the Fed on interest rate policy. Powell had openly criticized the investigation, describing it as an attempt to undermine the institution’s independence at a sensitive moment for U.S. monetary policy.
Warsh, a former Federal Reserve governor, has signaled that he would take a somewhat different approach from Powell if confirmed. He has called for a review of how the Fed measures inflation and has indicated he would seek closer coordination with the Treasury Department on broader economic issues. However, he has denied that former President Donald Trump sought any promises from him regarding future interest rate cuts.
With Tillis now backing the nomination, Warsh is widely expected to win confirmation, though the timetable remains tight. Powell’s current term as chair is set to expire on May 15, leaving only a narrow window for the Senate to complete the process. If the confirmation is delayed, Powell has said he would remain temporarily in the role until a successor is officially approved.
The development could mark a significant shift in the leadership of the Federal Reserve at a time when inflation, tariffs, and global economic instability remain major concerns for policymakers and investors alike.
Source Reuters
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