Tillis drops Fed nominee block after DOJ ends probe

What happened

Sen. Thom Tillis (R-N.C.) said Sunday he was prepared to drop his blockade of President Donald Trump’s nominee to lead the Federal Reserve after the Justice Department assured him it had dropped its criminal investigation of outgoing Fed Chair Jerome Powell. Tillis’ decision cleared the last major obstacle for Kevin Warsh to replace Powell.

Who said what

U.S. Attorney Jeanine Pirro last week said she had dropped her investigation of Powell tied to cost overruns on a Federal Reserve renovation, though she would “not hesitate to restart” it “should the facts warrant doing so.” With Democrats calling Warsh a “sock puppet” for Trump’s demanded interest rate cuts, Tillis’ opposition had “created an insurmountable deadlock” on the narrowly divided Banking Committee, The New York Times said.

What next?

The Banking Committee has scheduled a Wednesday vote on Warsh’s nomination, potentially advancing it to a full Senate vote before Powell’s chairmanship expires May 15. Powell can remain on the Fed Board of Governors through 2028, and Tillis said he suspected he would do so until the investigation is “fully settled,” which could be “a lengthy process.”

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