Sen. Thom Tillis said Sunday on NBC's "Meet the Press" that he is prepared to support Kevin Warsh's confirmation as Federal Reserve chairman, dropping a holdout that had stalled the nomination and clearing the way for a Senate Banking Committee vote Wednesday.
The North Carolina Republican's reversal came two days after U.S. Attorney Jeanine Pirro announced her office was ending its criminal investigation of current Fed Chair Jerome Powell over the central bank's $2.5 billion headquarters renovation. Tillis, who sits on the 13-Republican, 11-Democrat committee, had refused to advance any Fed nominee until the probe closed, and his single vote was enough to deadlock the panel.
Assurances from Justice
"I am prepared to move on with the confirmation of Mr. Warsh," Tillis said. "I think he's going to be a great Fed chair."
Tillis said he had spoken with Justice Department officials after Pirro's Friday announcement and was told the matter would be reopened only if the Fed's inspector general made a criminal referral. "They have made it very clear that the current investigation is completely and fully ended," he said.
Acting Attorney General Todd Blanche, appearing on the same program, said the inquiry now sits with the inspector general's office. "If he uncovers evidence of criminal conduct, there is no doubt that we will investigate," Blanche said.
A May 15 deadline
Powell's term as chairman ends May 15, giving the Senate roughly two and a half weeks to confirm a successor. President Trump announced in January that he had selected Warsh to lead the central bank's board. Warsh appeared before the Banking Committee last Tuesday, telling senators he wants "regime change" at the Fed and signaling he would revise how the central bank measures inflation and communicates with markets.
With Tillis on board, the full Senate is expected to take up the nomination shortly after the committee vote. Warsh is expected to push for rate cuts despite rising energy prices tied to the war in Iran.
IG review continues
The inspector general's office, led by Michael Horowitz, said Friday it is "actively working" to finish its review of the renovation, which covers two buildings approved in 2017 and now scheduled for completion next year. The estimated cost has climbed from $1.9 billion to nearly $2.5 billion, which the Fed has attributed to higher prices for materials, equipment and labor. The central bank is self-funded.
Pirro's office still intends to appeal a March ruling by U.S. District Judge James Boasberg that quashed grand-jury subpoenas issued to the Fed. Boasberg found the subpoenas were part of an effort to pressure Powell into lowering interest rates or resigning. Tillis said in a social-media post Sunday that "Any appeal of Judge Boasberg's ruling will be with respect to legal principles and not for the purpose of reissuing subpoenas."
Democrats on the committee have raised concerns about Fed independence given the Powell probe and are expected to oppose the nomination on Wednesday. Former federal prosecutors have said Pirro's chances on appeal, which she must file by May 4, are slim.
The Banking Committee vote is set for Wednesday. Powell, whose chairmanship ends May 15, can remain a voting member of the Fed's board until January 2028 and has said he plans to do so. He is scheduled to take questions at a Fed press conference the same day.