Sen. Tillis Opposes Kevin Warsh’s Nomination for Fed Chair
by Maxwell Mutuma · BlockonomiTLDR
Table of Contents
- TLDR
- Tillis Rejects Warsh Nomination Amid Powell’s DOJ Investigation
- Potential Stalemate in Senate Banking Committee
- Criticism from Democrats on Kelvin Warsh’s Nomination
- Sen. Thom Tillis opposes Kevin Warsh’s nomination for Federal Reserve chair until the DOJ probe into Powell is resolved.
- The DOJ investigation into Powell stems from the Fed’s headquarters renovation and his testimony before Congress.
- Tillis’ opposition could create a stalemate in the Senate Banking Committee, delaying Warsh’s nomination process.
- Democrats, led by Senator Elizabeth Warren, criticize Warsh’s nomination, citing concerns over Trump’s influence on the Fed.
- Warsh, a former Fed governor, faces challenges amid the political climate and ongoing legal investigations into Powell.
Senator Thom Tillis has stated that he will oppose the nomination of Kevin Warsh as Federal Reserve chair until the criminal probe of Jerome Powell is resolved. Tillis, a member of the Senate Banking Committee, emphasized the importance of protecting the Federal Reserve from political influence. He made his position clear in a statement, stressing that the Federal Reserve’s independence is non-negotiable.
Tillis Rejects Warsh Nomination Amid Powell’s DOJ Investigation
According to a CNBC report, Senator Tillis declared that he will oppose the confirmation of Kevin Warsh for Federal Reserve chair. He cited the ongoing investigation by the Department of Justice (DOJ) into Chairman Jerome Powell as his reason.
“I will oppose the confirmation of any Federal Reserve nominee, including for the position of Chairman, until the DOJ’s inquiry into Chairman Powell is fully and transparently resolved,” Tillis stated.
The criminal investigation stems from the Federal Reserve’s renovation of its headquarters and Powell’s testimony before Congress regarding the project. Powell believes the investigation is politically motivated, as it coincides with his refusal to cut interest rates at President Trump’s request. Tillis, however, emphasized that this issue must be resolved before moving forward with any new nominations for the Federal Reserve.
Potential Stalemate in Senate Banking Committee
Tillis’s opposition could create a roadblock for Warsh’s nomination, as he is a key member of the Senate Banking, Housing, and Urban Affairs Committee. This committee has 13 Republicans and 11 Democrats, meaning a single Republican vote against Warsh would likely lead to a stalemate.
Without a recommendation for approval, Warsh’s nomination would not be sent to the full Senate for a vote. Warsh, who was nominated by President Trump, is a former Federal Reserve governor with a deep understanding of monetary policy.
Despite Tillis’s opposition, Warsh’s supporters argue that his qualifications make him a suitable candidate to lead the Federal Reserve. However, the ongoing DOJ probe and the political climate surrounding the nomination could make the confirmation process more difficult.
Criticism from Democrats on Kelvin Warsh’s Nomination
Democratic lawmakers have also voiced concerns over Warsh’s potential nomination. Senator Elizabeth Warren of Massachusetts criticized the move, saying that no Republican claiming to care about the Federal Reserve’s independence should support Warsh.
“This nomination is the latest step in Trump’s attempt to seize control of the Fed,” Warren stated, citing Warsh’s past support for Wall Street.
The growing tension around Warsh’s nomination reflects broader political divisions over the future leadership of the Federal Reserve. The ongoing investigation into Jerome Powell further complicates an already contentious nomination process. While some Republicans support Warsh’s candidacy, the political and legal challenges surrounding the nomination could delay or derail the confirmation altogether.