Tillis Blocks Fed Chair Nominee Until DOJ Drops Powell Investigation

Sen. Thom Tillis, a retiring North Carolina Republican, is using his decisive vote on the Senate Banking Committee to block the Trump administration's nominee for Federal Reserve chair, Kevin Warsh, until the Justice Department drops its investigation into current Fed Chair Jerome Powell. The stalemate has left the administration without a clear path forward as Tillis, dismissing White House pressure, warned Wednesday that the DOJ's probe into Powell is legally and strategically counterproductive.

Tillis told reporters Wednesday that he remains a consequential player despite Trump's recent dismissal of him as "no longer a senator." "I'm not dead yet," Tillis said, adding that he is "not tauntable." The Senate Banking Committee will hold Warsh's confirmation hearing on Tuesday, April 22, but Tillis has made clear he will not advance the nomination while the Powell investigation continues.

The DOJ investigation focuses on statements Powell made to the Senate Banking Committee during testimony last year regarding cost overruns at the Fed's Washington headquarters. Powell has denied wrongdoing and characterized the probe as retaliation for his refusal to lower interest rates as aggressively as Trump demands. This week, officials from U.S. Attorney Jeanine Pirro's office visited the Federal Reserve's headquarters, prompting Tillis to criticize the approach as intimidation. "They're watching too many cop shows," Tillis said. "That's so bush league."

Tillis has signaled he may expand his leverage beyond the Fed chair nomination. He warned that he will block any attorney general nominee who has dismissed the events of January 6, 2021, and suggested he could make the Powell investigation a litmus test for future attorney general candidates if the DOJ does not close the probe.

Senate Majority Leader John Thune acknowledged Wednesday that the administration will need to resolve the Tillis standoff to move forward. "I think at some point they're going to have to deal with the committee, and they're going to have to deal with Tillis," Thune said. Other Senate Republicans have privately expressed confusion about the White House's strategy, viewing it as counterproductive.

Context

The clash reflects broader tensions over Fed independence and presidential power. Trump has indicated he would seek to remove Powell after Powell's term as chair ends next month if Powell does not leave voluntarily. "I'll have to fire him, OK? If he's not leaving on time," Trump told Fox Business host Maria Bartiromo on Wednesday. However, Tillis warned that such a move would fail legally and waste time that could be used to install a new Fed chair and board members under Trump's preferred timeline.

The Supreme Court has previously signaled opposition to presidential attempts to exert direct control over the Federal Reserve. Tillis argued that pursuing Powell's removal would result in protracted litigation while blocking the administration from achieving its actual goal of reshaping the Fed's leadership. "He won't have the right to terminate him, and all we've done is wasted time," Tillis said.

What's Next

The Senate Banking Committee hearing for Warsh on April 22 will test whether the administration moves to resolve the standoff or doubles down on the Powell investigation. Tillis indicated Wednesday that the White House has not signaled willingness to end the DOJ probe, leaving the outcome uncertain. If the investigation continues, Tillis has indicated he will use his Judiciary Committee vote to block attorney general nominees, potentially creating cascading confirmation delays across multiple Trump administration positions. The administration faces a decision: drop the Powell investigation to advance Warsh's confirmation, or maintain the probe and accept an indefinite delay in reshaping Fed leadership.