April 26, 2026
Washington — Senator Thom Tillis (R-N.C.) said Sunday he is prepared to advance Kevin Warsh’s nomination to chair the Federal Reserve, removing a significant roadblock days after the Justice Department dropped its criminal investigation into current Chair Jerome Powell.0
The move clears the way for a potentially swift confirmation of Warsh, a former Fed governor and Wall Street veteran, as President Donald Trump seeks to reshape monetary policy before Powell’s term expires on May 15. Tillis, a member of the Senate Banking Committee, had conditioned his support on the resolution of the DOJ probe into cost overruns on the Federal Reserve’s headquarters renovation.1
Senator Thom Tillis (R-N.C.), who announced he is lifting his hold on the Warsh nomination.
Speaking on NBC’s Meet the Press, Tillis stated he is now ready to move forward, describing Warsh as someone who “is going to be a great Fed Chair.” He emphasized that the DOJ’s decision to close the investigation removed a key concern regarding the integrity of the process and the Fed’s perceived independence.0
The DOJ’s action on Friday, announced by U.S. Attorney for the District of Columbia Jeanine Pirro, shifted the matter to the Federal Reserve’s inspector general for further review of the multibillion-dollar renovation project. No criminal wrongdoing was identified in the probe, which had centered on whether Powell misled Congress about the costs.25
Warsh, 56, served as a Fed governor from 2006 to 2011, becoming one of the youngest in the central bank’s history. A Harvard Law School graduate and former Morgan Stanley banker, he acted as the Fed’s key liaison to Wall Street during the 2008 financial crisis. Since leaving the Fed, he has been a visiting fellow at Stanford’s Hoover Institution and a vocal commentator on monetary policy.16
Trump nominated Warsh in late January, positioning him as a candidate who could deliver lower interest rates and a more growth-friendly stance while maintaining some distance from direct White House influence. Warsh has publicly pledged to act independently if confirmed.22
Kevin Warsh, President Trump’s nominee to succeed Jerome Powell as Federal Reserve Chair.
Tillis’s earlier hold had created a rare intra-party standoff. As a Republican on the 13-11 GOP-majority Banking Committee, his opposition risked a 12-12 tie that would have stalled the nomination. The senator had repeatedly stressed that his position was not personal but tied to preserving institutional norms amid the Powell investigation.45
Policy Implications and Market Context
Warsh’s potential ascension comes at a pivotal moment. The Fed is expected to hold interest rates steady at its upcoming meeting amid persistent inflationary pressures fueled by geopolitical tensions in the Middle East, including uncertainties around oil supplies and the Strait of Hormuz. Higher energy costs have already prompted warnings from companies like Procter & Gamble about significant profit impacts in fiscal 2027.5
Investors have closely watched Warsh’s signals. During his confirmation hearing earlier this month, he discussed potential “regime change” in inflation targeting and balance-sheet policy, views that initially rattled some markets concerned about tighter conditions but also signaled a pragmatic approach. Stocks have shown resilience in recent sessions, with the S&P 500 and Nasdaq hitting records last week on tech strength, though broader caution persists over valuations and external risks.35
A Warsh-led Fed could prioritize faster normalization of policy while navigating Trump administration priorities. Analysts note his experience during the 2008 crisis equips him to balance financial stability with growth objectives. However, questions remain about how he would navigate political pressures, especially given Trump’s history of public criticism of Fed leadership.17
Democrats on the committee are expected to challenge Warsh on issues ranging from financial regulation to his past skepticism of certain quantitative easing measures. Yet with Republican control of the Senate, confirmation appears likely once the committee advances the nomination, possibly as early as this week.9
The Federal Reserve’s Eccles Building in Washington, D.C.
The development provides a measure of policy clarity heading into a heavy earnings week, including reports from several Magnificent Seven tech giants. It also coincides with ongoing global market volatility tied to energy prices and supply-chain disruptions.
JBIZ News Desk- Washington DC
