Sen. Thom Tillis (R-NC), has reiterated he will not support Kevin Warsh’s appointment to become the next Federal Reserve chairman despite an effort by the White House to break down the senator’s insistence that the resolution of a criminal investigation into Fed Chairman Jerome Powell occurs first.
The Hill reports Tillis responded negatively to an idea offered by Treasury Secretary Scott Bessent to shift the Powell probe from the Department of Justice to the Senate Banking Committee. While stating he appreciated Bessent’s offer to give the Senate more oversight on the Fed’s activities, Tillis insisted the offer doesn’t resolve the question of having federal prosecutors investigate Powell over whether he committed perjury last summer in a Senate hearing when asked about cost overruns of the Fed’s headquarters renovation project.
“It doesn’t change my posture,” he said, adding Trump should be “angry” that US Attorney for the District of Columbia Jeanine Pirro’s grand jury subpoenas of the Fed.
Republicans have a 13-11 majority on the Banking Committee, where Tillis is a senior member. If Tillis and all of the committee Democrats reject Warsh, his nomination will not proceed to the full Senate for a confirmation vote.
“I made it very clear that the only way we move forward on any Fed nom … [is] until this is resolved,” he added. “If we undermine the independence of the Fed, there will be catastrophic economic consequences.”
Bessent called on called on the Banking Committee to proceed with a hearing on Warsh’s nomination despite Tillis’ stand
“I think it’s important to get the hearings underway, and I think we have an agreement to do that,” he said.
