Senator Tillis Blocks Fed Nominee Amid Jerome Powell Investigation
By John Nada·Mar 10, 2026·7 min read
Senator Thom Tillis blocks Kevin Warsh's Fed nomination until Jerome Powell's investigation concludes, stressing the need for Fed independence.
Senator Thom Tillis has firmly stated he will not support the confirmation of Federal Reserve chair nominee Kevin Warsh until the ongoing investigation into current Fed Chair Jerome Powell is resolved. Tillis emphasized this stance during a press conference, asserting that Warsh's qualifications are overshadowed by the unresolved legal matters surrounding Powell, who faces scrutiny over his refusal to comply with President Donald Trump's demands regarding interest rates.
Tillis made it clear that this blockade is not a reflection of Warsh's capabilities but a matter of upholding the Federal Reserve's independence. He articulated concerns that the perception of the Fed chair serving at the pleasure of the President could have significant implications for market stability. The senator referenced the pending investigation by the U.S. Attorney's Office in Washington and the Supreme Court's deliberation on Trump's authority to dismiss Fed officials, which includes Governor Lisa Cook.
The political maneuvering around Warsh's nomination highlights broader tensions within the federal financial system. As discussions about the Fed's role in monetary policy continue, the outcome of Powell's investigation could shape the future of the Federal Reserve and its leadership. This situation underscores the critical importance of maintaining an independent central bank in the face of political pressures, which can have lasting effects on market confidence and regulatory integrity.
Sen. Thom Tillis, R-N.C., talks with reporters in the U.S. Capitol during votes on Tuesday, March 10, 2026. According to Tillis, there is nothing that Federal Reserve chair nominee Kevin Warsh could say to get him to end his blockade on Warsh's confirmation. The North Carolina Republican made it clear that he has vowed not to vote for any Fed nominees, including Warsh, until the criminal investigation into Fed Chair Jerome Powell is resolved. This investigation is particularly significant given the implications it holds not only for Powell but for the entire structure and independence of the Federal Reserve itself.
Powell, who denies any wrongdoing, has publicly stated that he believes he is being targeted primarily for his refusal to cut interest rates as broadly and as quickly as demanded by President Donald Trump. This assertion raises serious concerns about the intersection of politics and monetary policy, a topic that has been at the forefront of discussions regarding the Federal Reserve's operations and its autonomy from executive influence.
Tillis responded to inquiries from reporters at the U.S. Capitol about his stance, saying, "No, no," when asked if Warsh could persuade him to change his position after their scheduled meeting. This unwavering stance illustrates Tillis's commitment to the notion that the integrity of the Federal Reserve must be preserved, regardless of the individual nominees involved. "This is not about people, it's about process," Tillis reiterated, indicating that his decision is rooted in a principle rather than personal opinions about Warsh's qualifications.
After the meeting with Warsh, Tillis reaffirmed his position, stating that he would vote against moving Warsh's nomination forward from the Banking Committee if the investigation into Powell is not completed by that time. He stressed, "This is about this is bedrock principle of Fed independence." Tillis’s comments draw attention to the broader implications of a compromised Federal Reserve, suggesting that any perceived alignment with presidential directives could undermine public trust and market stability.
In addition to the pending Powell probe, Tillis noted that the Supreme Court has yet to rule on whether Trump possesses the authority to dismiss Fed Governor Lisa Cook. This adds another layer of complexity to the current political landscape surrounding the Federal Reserve, as Cook's position is also under scrutiny. Trump has claimed that he sought to fire Cook due to allegations made by Bill Pulte, head of the Federal Housing Finance Agency, who suggested that Cook committed mortgage fraud. However, defenders of Cook assert that she, much like Powell, is being targeted due to her opposition to Trump’s demands regarding interest rates.
Tillis did not hold back in his criticism of this effort to fire Cook, labeling it "sophomoric" and arguing that anyone responsible for such proposals should also face consequences. This sentiment underscores the ongoing battle between the Trump administration's desire for control over monetary policy and the longstanding tradition of an independent Federal Reserve.
Despite the political turbulence surrounding his nomination, Tillis expressed his admiration for Warsh's qualifications, stating, "I've known of his work for quite some time, and that's why I'm so frustrated that I'm not going to be able to cast a vote until we dispose of the other issues." This acknowledgment of Warsh's skills illustrates a complex dynamic in which personal respect for a nominee is overshadowed by the need to uphold institutional principles.
Moreover, Tillis highlighted the fact that he and other members of the Senate Banking Committee were witnesses to Powell's testimony regarding the multi-billion-dollar renovation of the Fed's headquarters in Washington, D.C. This testimony is part of the investigation into Powell, which includes scrutiny of his actions and statements related to the renovation project. Powell himself has stated that he is under investigation by the U.S. Attorney's Office in Washington concerning this project and for his testimony to the Banking Committee.
After reflecting on his experience as a witness to this testimony, Tillis questioned the validity of the ongoing investigation, stating, "We had seven members of the Banking Committee who were witnesses at the alleged scene of the crime who said no crime was committed." This assertion calls into question the legitimacy of the investigation and raises concerns about the motivations behind it. Tillis further expressed his frustration, stating, "Why are we even still having this discussion and holding up a great nominee?" He attributed the ongoing blockade to a young U.S. attorney with a dream and a "bogus basis for an investigation," urging authorities to acknowledge the lack of merit in the case and allow for Warsh's confirmation to proceed.
In a related vein, Senator Cynthia Lummis, a Republican from Wyoming, also expressed support for Warsh following her own meeting with him. She praised their conversation as "incredibly productive" and "thoughtful," reflecting a shared sentiment among some members of Congress that Warsh's nomination could represent a potential positive shift for the Federal Reserve.
Lummis articulated her belief that the United States requires a Federal Reserve that is transparent and accountable, particularly in the context of emerging financial innovations such as digital assets. She emphasized that embracing these innovations is vital for the nation's financial future and expressed her eagerness to continue discussions with Warsh regarding how he intends to modernize the Fed and ensure it remains accountable to both the American people and their representatives in Congress.
The divide among senators regarding Warsh's nomination illustrates the broader ideological and political rifts that exist within Congress, especially in relation to the Federal Reserve's role and its relationship with the executive branch. While some, like Tillis and Lummis, are focused on preserving the independence of the Fed and ensuring it is insulated from political pressures, others may view the current situation as an opportunity to reshape the institution according to their policy preferences.
This ongoing situation surrounding Warsh's nomination and Powell's investigation is emblematic of the challenges faced by the Federal Reserve in maintaining its independence amidst increasing scrutiny and political influence. As the investigation unfolds and the Senate Banking Committee deliberates on the future of the Fed's leadership, the implications for the broader economy and market stability remain uncertain.
The potential ramifications of a compromised Federal Reserve extend beyond the immediate political landscape. A perception that the central bank is acting in accordance with presidential directives could lead to a loss of confidence among investors and market participants, which in turn could have destabilizing effects on the economy. The independence of the Federal Reserve is a cornerstone of its ability to effectively manage monetary policy, and any threats to that independence may have lasting repercussions.
As the situation develops, all eyes will be on the Senate Banking Committee and the broader implications of their decisions regarding Warsh's nomination and Powell's fate. The outcome of this political standoff has the potential to reshape the future of the Federal Reserve and its role in guiding the nation's economic policy in the years to come. With each passing day, the stakes continue to rise, highlighting the critical importance of preserving the integrity and independence of one of the nation's most vital financial institutions.